YELLOW PAD PAPER

APRIL 18,2023
SEPARATE YOUR ANSWER PER CHAPTER. ALSO SEPARATE YOUR ANSWER PER PROBLEM.
INTERMEDIATE ACCOUNTING 1- 2020 VERSION
ASSIGNMENT 1
Answer Questions 1-15 at the end of Chapter 1
1. DEFINE CASH –
CASH is presented as a current asset that refers to money and any other negotiable instruments
that is readily available for use in operating activities and can be deposit directly at the bank. It
includes cash on hand – bills, coins, checks and money orders, cash in bank and cash fund- petty
cash fund, change fund, dividend fund and payroll fund.

2. EXPLAIN THE MEANING OF UNRESTRICTED CASH

Unrestricted cash only means that there is no existing restrictions or contracts for cash to be
used, it is readily available to be spent in any purpose except debt.

3. DEFINE CASH EQUIVALENTS –

Cash Equivalents are items that are short term and highly liquid investments which means they
are readily or easily convertible to cash. three-month rule is always applied wherein the duration
is from the date of purchase up to the date of maturity. Purchased three months before maturity,
three month time deposits, commercial papers and bsp treasury bills.

4. EXPLAIN MEASUREMENT OF CASH

Cash is always measured at face value or the value printed on a coin or bills.

5. EXPLAIN THE FINANCIAL STATEMENT PRESENTATION OF CASH AND CASH

EQUIVALENTS.
Cash and cash equivalents are presented in the very first line item of current assets section in the
statement of financial position. It indicates that they are highly liquid

6. EXPLAIN THE CLASSIFICATION OF INVESTMENTS OF EXCESS CASH IN TIME

DEPOSITS, MONEY MARKET INSTRUMENTS AND TREASURY BILLS.
- excess cash are putted in investment for it to be beneficial for them since it will earn more
rather than staying it in a bank account.
 7. EXPLAIN TREATMENT OF FOREIGN CURRENCY
Cash in foreign currency is translated to Philippine pesos using the current exchange rate.
Also if deposits in foreign countries is not subject to any foreign exchange rate restriction
it is included in cash, if it has it is classified separately in noncurrent asset section.
8. EXPLAIN CLASSIFCATION OF A CASH FUND
Cash fund is classified as
9. EXPLAIN A BANK OVERDRAFT
10. EXPLAIN A COMPENSATING BALANCE

11. EXPLAIN UNDELIVERED CHECK, POST DATED CHECK DELIVERED AND

STALE CHECK
12. EXPLAIN THE ACCOUNTING FOR CASH SHORTAGE OR CASH OVERAGE
13. EXPLAIN THE IMPREST SYSTEM OF INTERNAL CONTROL
14. WHAT IS A PETTY CASH FUND
15. EXPLAIN THE TWO METHODS OF ACCOUNTING FOR PETTY CASH FUND.

Answer Question 1-10 at the end of Chapter 2

 1. EXPLAIN THE THREE KINDS OF BANK DEPOSITS
2. WHAT IS BANK RECONCILIATION
3. WHAT IS A BANK STATEMENT
4. WHAT ARE CREDIT MEMOS
5. WHAT ARE DEBIT MEMOS
6. WHAT ARE DEPOSITS IN TRANSIT
7. WHAT ARE OUTSTANDING CHECKS
8. DEFINE A CERTIFIED CHECK
9. WHAT IS THE TREATMENT OF CERTIFIED CHECK FOR BANK
RECONCILIATION PURPOSES
10. EXPLAIN THE THREE FORMS OF BANK RECONCILIATION

Answer Question 1-10 at the end of Chapter 3

1. WHAT IS A TWO DATED BANK RECONCILIATION
2. EXPLAIN BOOK DEBITS
3. EXPLAIN BOOK CREDITS
4. EXPLAIN BANK DEBITS
5. EXPLAIN BANK CREDITS
6. WHAT IS THE FORMULA IN THE COMPUTATION OF BALANCE PER BOOK
7. WAT IS THE FORMULA IN THE COMPUTATION OF BALANCE PER BANK
8. WHAT IS THE FORMULA IN THE COMPUTATION OF DEPOSITS IN TRANSIT
9. WHAT IS THE FORMULA IN THE COMPUTATION OF OUTSTANDING CHECKS
10. WHAT IS A PROOF OF CASH
ASSIGNMENT 2
Answer the following problem:

Problem 1-16
Problem 1-19
Problem 2-4