Which item should not be included in cash account

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Reference no: EM133008291

Problem 1: Which is NOT considered as a cash equivalent?

a. A three-year treasury note maturing on May 30 of the current year purchased by the entity on April 15 of the current year

b. A three-year treasury note maturing on May 30 of the current year purchased by the entity on January 15 of the current year

c. A 90-day treasury bill

d. A 60-day money market placement

Problem 2: At the end of the current year, an entity had various checks and papers in its safe. Which item should NOT be included in its cash account in the current year-end statement of financial position?

a. US $20,000 cash.

b. Past due promissory note issued in favor of the entity by its President.

c. Another entity's P150,000 check payable to the entity dated December 15 of the current year.

d. The entity's undelivered check payable to a supplier dated December 31 of the current year.

Reference no: EM133008291

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