Reference no: EM132936457

Problem 1: To be reported as "cash and cash equivalents," the cash equivalent must be

a. Deposited in a financial institution, particularly in a bank

b. Available for the redemption of preference shares or bonds

c. Can be freely used in current operations

d. Set aside for acquisition of construction of items of property, plant, and equipment

Problem 2: Which of the following should be presented as cash in the statement of financial position?

a. Cash in special checking account for payroll

b. Compensating balances

c. Cash deposited with utility company

d. Customer's checks

Problem 3: Unreleased checks

a. Are outstanding checks

b. Are treated as certified checks

c. Are part of the payor's cash balance

d. Should be a book-reconciling item since the bank deducted this amount at arriving the cash balance in the bank statement