Reference no: EM132894488

Question 1: A debt security can qualify as a cash equivalent if

A. it has a remaining maturity of 3 months or less as at the reporting date

B. it has an original maturity of 3 months or less

C. it is acquired 3 months or less before its maturity date

D. all of these

Question 2: Which of the following may be properly presented under "Cash and Cash Equivalents" in the December 31, 20x1 statement of financial position?

A. Customer's check dated Jan.1, 20x2 and mailed to the bank for deposit on Dec. 31, 20x1

B. Treasury bills acquired on Dec. 31, 20x1 and maturing on March 31, 20x2

C. Shares of stocks to be sold on the first week of January 20x2; a purchase commitment is already obtained.

D. Redeemable preference shares acquired three months prior to the redemption date

Question 2:  A compensating balance that is legally restricted as to withdrawal is

A. excluded from cash

B. included in cash

C. disclosed in the notes

D. a and c