Chapter 12 Questions(1)

Chapter 12 Questions(1) - # 1 Which of the following items...

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# 1 Which of the following items would be  considered a cash equivalent if it was held at  the balance sheet date? a. U.S. Treasury bill purchased when there were 90 days  until maturity. b. Commercial paper with a 6-month maturity which was  purchased at the issue date. c. The common stock of a company traded on the New York  Stock Exchange which was purchased 30 days before the  balance sheet date. d. U.S. Treasury note which matures 2 years after it is  issued and which was purchased 4 months before the  balance sheet date.
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#2 Which of the following statements is  true? a. Investments in commercial paper or U.S. Treasury bills  must be treated as cash equivalents. b. Investments in stock cannot be treated as cash  equivalents because they are not convertible into a known  amount of cash. c. Investments which are convertible into a known amount  of cash and mature within three months after the balance  sheet date are treated as cash equivalents. d. Investments in money market accounts cannot be treated  as cash equivalents because they do not have a specific  maturity date.
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#3 Maria’s Cantina had the following results for December 31, 2009 and  2010, respectively:     2009   
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This note was uploaded on 04/15/2011 for the course ACCT 2101 taught by Professor Christianwurst during the Spring '08 term at Temple.

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Chapter 12 Questions(1) - # 1 Which of the following items...

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