ACC 201 Practice Questions with 100% Correct Verified Answers
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Course
ACC 201
Institution
ACC 201
B. Coins, currency, and checking accounts. - Answer 91. Cash, not including cash
equivalents, includes:
A. Postage stamps.
B. Coins, currency, and checking accounts.
C. IOUs.
D. Two-year certificates of deposit.
E. Money market funds
ACC 201 Practice Questions with 100% Correct
Verified Answers
B. Coins, currency, and checking accounts. - Answer 91. Cash, not including cash
equivalents, includes:
A. Postage stamps.
B. Coins, currency, and checking accounts.
C. IOUs.
D. Two-year certificates of deposit.
E. Money market funds.
A. Are short-term, highly liquid investment assets. - Answer 92. Cash equivalents:
A. Are short-term, highly liquid investment assets.
B. Include 6-month CDs.
C. Include checking accounts.
D. Are recorded in petty cash.
E. Include money orders.
C. Are short-term investments sufficiently close to their maturity date that their value is
not sensitive to interest rate changes. - Answer 93. Cash equivalents:
A. Include savings accounts.
B. Include checking accounts.
C. Are short-term investments sufficiently close to their maturity date that their value is
not sensitive to interest rate changes.
D. Include time deposits.
E. Have no immediate value.
,E. All of these. - Answer 94. Cash equivalents:
A. Are readily convertible to a known cash amount.
B. Include short-term investments purchased within 3 months of their maturity dates.
C. Have a market value that is not sensitive to interest rate changes.
D. Include short-term U.S. treasury bills.
E. All of these.
A. $35,421 - Answer 95. The following information is available for Holland Company at
December 31:
money market fund balance 2790
certificate of deposit maturing June 30 of next year 15000
postdated check from customers 1475
cash in bank account 22431
NFS check from customers returned by bank 650
cash in petty cash fund 200
inventory of postage stamp 18
U.S treasure bill purchase on 15 Dec. and maturing
on Feb.28 of following year 10000
Based on this information, Holland Company should report Cash and Cash Equivalents
on December 31 of:
A. $35,421
B. $50,421
C. $37,546
, D. $36,246
E. $40,439
Add $2,790 in money market fund + $22,431 of cash in bank + $200 of cash in petty cash
fund + $10,000 of U.S. Treasury bill with maturity of less than three months on date of
purchase = $35,421.
E. $19,462 - Answer 96. The following information is available for Johnson
Manufacturing Company at June 30:
cash in bank account 6455
inventory of postage stamp 74
money market fund balance 12400
petty cash balance 350
NFS check from customers returned by bank 867
postdated check from customers 391
money order 257
a 9-month certificate of deposit maturing on
Dec. 31 of the following year 8000
Based on this information, Johnson Manufacturing Company should report Cash and
Cash Equivalents on June 30 of:
A. $15,062
B. $20,146
C. $20,072
D. $19,205
E. $19,462
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