1 . Cash equivalents are

Select one:

a.

Short-term and highly liquid investments that are readily convertible into cash and acquired three months before maturity

b.

Short-term and highly liquid marketable equity securities

c.

Short-term and highly liquid investments that are readily convertible into cash with remaining maturity of three months

d.

Short-term and highly liquid investments that are readily convertible into cash

2. Thor Company provided the following data on December 31, 2018:

Checkbook balance

4,000,000

Bank statement balance

5,000,000

Cash in sinking fund

2,000,000

Check drawn on Thors account, payable to supplier, dated and recorded on December 31, 2018 but not mailed until January 15, 2019 amounted to P500,000.

On December 31, 2018, what amount should be reported as cash under current assets?

Select one:

a. 3,500,000

b. 6,500,000

c. 4,500,000

d. 5,500,000

3. Tranvia Company had the following balances on December 31, 2018:

Cash in checking account

350,000

Cash in money market account

750,000

Treasury bill, purchased November 1, 2018, maturing January 31, 2019

3,500,000

Time deposit purchased December 1, 2018, maturing March 31, 2019

4,000,000

What amount should be reported as cash and cash equivalents on December 31, 2018?

Select one:

a. 8,600,000

b. 4,600,000

c. 1,100,000

d. 3,850,000

4. The objective of financial reporting in the Conceptual Framework

Select one:

a. Is the foundation for the Conceptual Framework.

b. All of the choices are correct regarding the objective of financial reporting.

c. Is not found in the Conceptual Framework.

d. Includes the qualitative characteristics that make accounting information useful.