Homework answers / question archive / La Consolacion College - Tanauan City, Batangas BSA 1221 PAS 7 Statement of Cash Flows 1)Entity A had the following balances at December 31, 20x1: Cash in checking account    35,000 Cash in 90-day money market account   75,000 Treasury bill, purchased 12/1/x0, maturing 5/31/x2       150,000 Treasury bill, purchased 12/1/x1, maturing 2/28/x2       200,000   How much cash and cash equivalents is reported in Entity A’s December 31, 20x1 statement of financial position? a

La Consolacion College - Tanauan City, Batangas BSA 1221 PAS 7 Statement of Cash Flows 1)Entity A had the following balances at December 31, 20x1: Cash in checking account    35,000 Cash in 90-day money market account   75,000 Treasury bill, purchased 12/1/x0, maturing 5/31/x2       150,000 Treasury bill, purchased 12/1/x1, maturing 2/28/x2       200,000   How much cash and cash equivalents is reported in Entity A’s December 31, 20x1 statement of financial position? a

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La Consolacion College - Tanauan City, Batangas

BSA 1221

PAS 7 Statement of Cash Flows

1)Entity A had the following balances at December 31, 20x1: Cash in checking account    35,000

Cash in 90-day money market account   75,000 Treasury bill, purchased 12/1/x0, maturing 5/31/x2       150,000 Treasury bill, purchased 12/1/x1, maturing 2/28/x2       200,000

 

How much cash and cash equivalents is reported in Entity A’s December 31, 20x1 statement of financial position?

a.  110,000           c. 310,000

b.  235,000           d. 460,000

 

2.            Entity A acquires equipment  by  issuing shares of stocks. How should Entity  A report the transaction in the statement of cash flows?

a.            Operating activities

b.            Investing activities c. Financing activities

d. Not reported

 

3.            Entity A, a financial institution, received cash dividends from its investments in marketable securities during the year. How will the dividends be  presented  in Entity A’s statement of cash flows?

a.            as investing activity b. as operating activity

c.             as financing activity

d.            a or b

 

4.            Which of the following statements best describes a statement of cash flows?

a.            The statement of cash flows is also called the statement of activities.

b.            The statement of cash flows shows information on an entity’s assets, liabilities and equity.

c.             The statement of cash flows shows information on an entity’s income and expenses during the period.

d.            The statement of cash flows shows historical changes of cash and cash equivalents during the period.

5.            Which of the following is presented under the investing activities section of a statement of cash flows?

a.            Collection of accounts receivable

b.            Cash purchases of inventories

c.             Purchase of equipment through cash

d.            Issuance of share capital through cash