1. Which of the following would not be considered a Cash Equivalent?

A. A one-year Treasury instrument acquired with 12 months remaining until its due date.

B. A five-year Treasury instrument acquired with 2 months remaining until its due date.

C. Commercial Paper

D. Money Market Funds

5. Company may be able to secure immediate cash from accounting receivables, rather than waiting for customers to pay balances due. One way to accelerate cash receipts is by factoring accountings receivables. To account for factoring accounts receivables, a company must first determine whether the transaction meets the requirements to record the transaction as a sale. Which is not a condition that needs to be met in order to record the transaction as a sale?

A. The selling company collects less than 25% of the accounts receivable within one year of the factoring arrangement.

B. The receivables are isolated from the selling company. That is, the receivables must be out of the reach of the seller as well as its creditors even in the case of bankruptcy.

C. The factor has the ability to pledge or exchange the receivables

D. The selling company does not maintain effective control over the receivables (i.e., there is no continuing involvement by the selling company).

8. The below calculation illustrates the accounting for which type of inventory system?

Beginning Inventory (Known from the prior period)

+ Net Purchases (Recorded in the GL)

= Cost of Goods Available for Sales (Subtotal)

- Ending Inventory (Physically counted)

= Cost of Goods Sold (Computed)

Group of answer choices

A. Periodic

B. Perpetual

C. LIFO

D. FIFO