Professional Documents
Culture Documents
Acc103 P2 Exam With Answers
Acc103 P2 Exam With Answers
PART I
a. Money only
b. Money and any negotiable instrument
c. Any negotiable instrument
d. Money and any negotiable instrument that is payable in money and
acceptable by the bank for deposit and immediate credit
32. To be reported as “cash and cash equivalent”, the cash and cash
equivalent must be
a. Short-term and highly liquid investments that are readily convertible into
cash
b. Short-term and highly liquid investments that are readily convertible into
cash with remaining maturity of three months
c. Short-term and highly liquid investments that are readily convertible into
cash and acquired three months before maturity
d. Short-term and highly liquid marketable equity securities
34. All of the following can be classified as cash and cash equivalents,
except?
39. Unreleased checks (checks drawn before the end of reporting period but
held for later delivery to creditors)
40. Which of the following shall not be considered “cash” for financial
reporting purposes?
a. Certificates of deposit
b. Checking accounts
c. Money market saving certificate
d. Postdated check
43. The petty cash account under the imprest fund system is
debited
a. Separation of duties
b. Assignment of responsibility
c. Proper authorization
d. Imprest system
46. Under the indirect method, the cash flow from operating activities is
determined by adjusting the reported profit by (choose the incorrect
statement)
47. Under the indirect method, the cash flow from operating activities is
determined by adjusting the reported profit by (choose the incorrect
statement)
48. When preparing a statement of cash flows using the direct method,
amortization of patent is
a. $9,000.
b. $15,000.
c. $12,000.
d. $13,000.
a. $20,000.
b. $20,300.
c. $25,800.
d. $27,200.
a. $13,000
b. $15,000
c. $18,000.
d. $19,000
61. Bobby Company has the following account balances on December 31,
2022.
● Cash in bank 3,000,000
● Cash on hand 125,000
● Cash restricted for addition to plant and expected to be distributed in 2023
1,600,000
● Cash on bank included P 600,000 compensating balance against short-term
borrowing arrangement. The compensating balance is not legally restricted as
to withdrawal.
On December 31, 2022, what total cash should be reported under current
assets?
a. 3,125,000
b. 3,000,000
c. 2,525,000
d. 3,975,000
62. On December 31, 2022, Funny Company had the following balances.
● Cash in bank P3,000,000
● Petty cash fund – all funds were reimbursed on 12/31/2022 P50,000
● Time deposit due August 1, 2023 P250,000
● Cash in the bank included P600,000 of compensating balance against
short-term borrowing arrangement on December 31, 2022. The compensating
balance is legally restricted as to withdrawal.
On December 31, 2023, what total amount should be reported as cash and
cash equivalents?
a. 3,050,000
b. 2,450,000
c. 3,000,000
d. 3,300,000
63. Jomarie Moreno had the following account balances on December 31,
2022:
● Cash in bank P3,250,000
● Cash on hand P125,000
● Cash restricted for plant acquisition (to be disbursed in 2023) P3,200,000
● Cash in the bank included P100,000 of compensating balance against long-
term borrowing. The compensating balance is not legally restricted as to
withdrawal.
On December 31, 2022, what is the total cash to be reported under current
assets?
a. P 6,575,000
b. P 6,475,000
c.P 3,350,000
d. P 3,375,000
64. On December 31, 2022, Kimberly had the following cash balances:
● Cash in bank P1,800,000
● Petty cash fund (all funds were reimbursed on 12/31/22) P50,000.
● Time deposit (due September 1, 2023) P250,000
● Cash in the bank included P600,000 of compensating balance against short-
term borrowing arrangement on 12/31/22. The compensating balance is legally
restricted as to withdrawal.
On December 31, 2022, what is the amount that is to be reported as cash and
cash equivalents?
a. P 2,100,000
b. P 1,950,000
c. P 1,500,000
d. P1,250,000
65. On December 31, 2022, Merwin Inc. reported cash accounts with the
following details
● Undeposited collections P70,000
● Cash in bank – PCIB checking account P500,000
● Cash in bank – PNB (overdraft) P(50,000)
● Undeposited NSF check received from customer dated 12/01/21 P15,000
● Undeposited customer check, dated 01/15/34 P25,000
● Cash in bank – PCIB (fund for payroll) P150,000
● Cash in bank – PCIB (savings deposit) P100,000
● Cash in bank – PCIB (90-day money market instrument) P2,000,000
● Cash in foreign bank – restricted P100,000
● IOUs from officers P30,000
● Sinking fund cash P450,000
● Financial asset held for trading P120,000
On December 31, 2021, what total amount should be reported as cash and cash
equivalents?
a. P 2,660,000
b. P 2,810,000
c. P 2,770,000
d. P 2,820,000