1/23/2021 Prelim Exam: Attempt review (page 2 of 50)

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Question 2
Little Company reported the following current assets on December 31, 2020:
Correct
           Cash                                                                                         P 5,000,000
Mark 1.00 out of
1.00            Accounts receivable                                                                    2,000,000  
           Inventory, including goods received on

                     consignment P 200,000                                                      800,000

           Prepaid expenses, including deposit of P50,000 made
                     on inventory to be delivered in 18 months                         150,000
           Total current assets                                                                   P 7,950,000
  
            Cash in general checking account                                          P 3,500,000

            Cash fund to be used to retire bonds payable in 2022             1,000,000

            Cash held to pay value added taxes                                            500,000

            Total cash                                                                               P 5,000,000

What amount of current assets should be reported on December 31, 2020?

Select one:
a. P 6,700,000 

b. P 6, 750,000

c. P 7,750,000

d. P 7,700,000

Your answer is correct.

The correct answer is: P 6,700,000

Module 5 STATEMENT OF
◄ VM No. 3 Nov. 10, 2020 Jump to...
COMPREHENSIVE INCOME - Part 2 ► 

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