Cpa exam far 2023 - Study guides, Class notes & Summaries

Cash - Answer Money that is FREE and CLEAR and available to be spend in current operations. Not Cash: - Answer Security deposits & bond sinking funds Three-Month Rule - Answer Highly liquid securities with ORIGINAL maturity dates of three months or less are treated as cash. Bad Debts - Direct Write-Off Method - Answer - No entry for bad debts until customer actually defaults. - At default, the cutomer's account is written off. - Theoretically weak, matching issue - Only allowed if bad ...

Cash - Answer Money that is FREE and CLEAR and available to be spend in current operations. Not Cash: - Answer Security deposits & bond sinking funds Three-Month Rule - Answer Highly liquid securities with ORIGINAL maturity dates of three months or less are treated as cash. Bad Debts - Direct Write-Off Method - Answer - No entry for bad debts until customer actually defaults. - At default, the cutomer's account is written off. - Theoretically weak, matching issue - Only allowed if bad ...

CPA Exam: FAR Questions With Correct Answers And Illustrations 2022/2023

The cash account in the current section of the December 31, 2018 balance sheet of King Company consists of: Cash in banks P2,250,000 Cash restricted for additions to plant (expected to be disbursed in 2020) 3,000,000 Petty cash funds (all funds were replenished on December 31, 2018 30,000 Included in the cash in banks is a compensating balance of P750,000 against short term borrowing arrangements at December 31, 2018. The compensating balance is not legally limited as to withdrawal by King...