Intermediate Accounting 1

Quiz 1
Introduction to Financial Assets
1. Cash
-Financial Assets

2. Cash Equivalents
-Financial Assets

3. Accounts Receivable
-Financial Assets

4. Inventories
-Non- Financial Assets

5. Investments in debt securities at FVOCI

-Financial Assets

6. Investments in equity securities at FVTPL

-Financial Assets

7. Refundable security deposits

-Financial Assets

8. Cash surrender value of life insurance policy

- Financial Assets

9. Intercompany loans and receivables

-Financial Assets

10. Claims for income tax refund

-Financial Assets

Quiz 2

1. Cash restricted for use in current operations should be presented as part of current
assets section of the statement of financial position.
-True

2. Undelivered checks should be presented as part of cash in the statement of financial

position
-True

3. Cash equivalents with a maturity of more than three months but less than one year
should be presented separately as part of other noncurrent assets.
Intermediate Accounting 1

-False
4. Customer’s post-dated checks should be reverted back to cash until cleared with the
bank at the end of the reporting period
-False

5. Company’s post-dated checks should be reverted back to receivables until cleared

with the bank at the end of the reporting period
-False

6. A bank overdraft which cannot be offset against another account should be reported
as liability
-Tue

7. Employee IOUS should be presented as part of receivables rather than cash.

-True

8. A right of offset exist when a company has a legal and enforceable right of offset and
it intend to settle on a NET basis
-True

9. Cash denominated in foreign currency should be measured at the historical

exchange rate of cash receipts and disbursements.
-False

10. Company A purchased a P100,000 treasury bill with a maturity date of six months
and 4.5% interest per annum on November 13, 2020, on December 31, 2020.
Company A should record the treasury bills as:
-Cash Equivalents