IAC

• Cash is the most liquid asset in the statement of financial position.


  TRUE
• Customer's checks are generally excluded in the cash balance since these do not represent actual cash.


  FALSE
• The cash balance includes coins and currencies but not demand deposits nor savings deposits.


  FALSE
• Postdated checks are dated after the reporting date.


  TRUE
• Cash denominated in foreign currency is translated at the exchange rate as of the date the cash was received.


  FALSE
• Postdated customer's checks shall not be included in the cash balance.


  TRUE
• Postdated supplier's checks shall be included in the cash in bank balance.

  TRUE
• The amount of unreleased supplier's checks shall still be included in the accounts payable balance.

  TRUE
• Postdated customer's checks shall not be included in the accounts receivable balance

  FALSE
• Cash in bank shall not be included in the cash balance since the actual amount of cash is not in the possession of the entity.

  FALSE
• Unlike demand and savings deposits, time deposits are reported as part of cash equivalents if certain conditions were met.

  TRUE
• Cash funds, regardless of their purpose, are always included in the cash balance since they represent actual amounts of cash.


  FALSE
• Cash set aside for the acquisition of a land shall be excluded from the cash balance.


  TRUE
• Investments in the ordinary shares of another entity may be classified as cash equivalent, provided these were acquired three months before the expected date of sale.

  FALSE
• Investments in the redeemable preference shares of another entity may be classified as cash equivalent, provided these were acquired three months before the maturity date.

  TRUE
• Generally, the original term of an investment is not relevant in determining whether it can be classified as cash equivalent or not.

  TRUE
• By their very nature, cash equivalents are not cash per se, but owing to their high level of liquidity, they are considered as "equivalents to cash".

  TRUE
• To be classified as cash equivalents, the original term of the investment shall not exceed six months.

  FALSE
• Cryptocurrencies can be considered as cash since some people or entities accept them as a mode of payment.

  FALSE
• Amounts maintained in online payment platforms (e.g., online banking apps) are not considered as cash.

  FALSE
• Generally, bank overdrafts are reported as current liabilities.


  TRUE
• On December 10, 2023, an entity received a customer check dated December 28, 2023. This check shall be excluded in the cash balance as of December 31, 2023 since it was post-dated when originally received.

  FALSE
• On December 10, 2023, an entity received a customer check dated January 5, 2024. This check shall be excluded in the cash balance as of December 31, 2023 since it was post-dated as of that date.


  TRUE
• If a customer's check in the possession of the entity becomes stale, it shall be excluded from the cash balance and included in the accounts receivable balance.

  TRUE
• An entity invested its excess funds to a treasury bill with an original term of one year but with 2 months left before its maturity. This investment cannot be considered as cash equivalent.

  FALSE
• 1. Given the following items, which of them is/are included in the total cash balance?I. Post-dated customer checkII. Post-dated supplier checka.I onlyb. II onlyc. Both I and IId. Neither I nor II

  A