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CFAS Chapter 5 Problem 2

The document contains 5 problems about reporting cash and cash equivalents and presenting items in the statement of cash flows. Problem 1 asks to calculate the amount of cash and cash equivalents to report based on given bank balances and treasury bills maturing within 3 months. Problem 2 asks which cash flow is presented in the operating activities section. Problem 3 asks whether interest expense paid is presented in operating or financing activities. Problem 4 asks about exchange differences from foreign currency cash flows. Problem 5 asks how an equipment purchase with a down payment and note payable should be reported.

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97 views1 page

CFAS Chapter 5 Problem 2

The document contains 5 problems about reporting cash and cash equivalents and presenting items in the statement of cash flows. Problem 1 asks to calculate the amount of cash and cash equivalents to report based on given bank balances and treasury bills maturing within 3 months. Problem 2 asks which cash flow is presented in the operating activities section. Problem 3 asks whether interest expense paid is presented in operating or financing activities. Problem 4 asks about exchange differences from foreign currency cash flows. Problem 5 asks how an equipment purchase with a down payment and note payable should be reported.

Uploaded by

jelou ubag
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CFAS Chapter 5 Problem 2

1. Entity a had the following balances on December 31, 20x1:


Cash in bank 35,000
Cash in a 90-day money market account 75,000
Treasury bill, purchased 11/1/x1, maturing 350,000
1/31/x2
Treasury bill, purchased 12/1/x1, maturing 400,000
3/31/x2

How much is the cash and cash equivalents to be reported in entity a’s December 31,20x1
statement of financial position? 460,000

2. Which of the following cash flows is presented in the operating activities section of a
statement of cash flows? Cash receipts from the sale of goods, rendering of services, or
other forms of income
3. In the statement of cash flows of the non-financial institution, interest expense paid is
presented under operating activities or financing activities
4. Which of the following is presented in the activities section of the statement of cash flow?
Exchange differences from translating foreign currency denominated cash flows. Noncash
transaction.
5. Entity a acquires equipment by paying a 10% down payment and issuing a note payable for
the balance. How should an entity a report the transaction in the statement of cash flow?
Down payment-investing activities; note payable-none

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