1. Which can qualify as cash equivalent?   a. One-year BSP treasury bill b. Six-month money market placement c. Equity securities d. Preference shares with specified redemption date and acquired three months before redemption date

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.10E
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1. Which can qualify as cash equivalent?
 
a. One-year BSP treasury bill
b. Six-month money market placement
c. Equity securities
d. Preference shares with specified redemption date and acquired three months before redemption date
 
2. According to PAS 7, which of the following statement is incorrect? *
 
a. Statement of Cash Flows requires an entity to present a statement of cash flows as an integral part of its primary financial statements
b. Investing and financing transactions which do not require the use of cash should be excluded from the statement of cash flows, but they should be separately disclosed elsewhere in the financial statements
c. Cash flows under operating activities are classified and presented either using the 'direct' or 'indirect' method
d. None. All of the above statements are correct
 
3. The aggregate cash flows arising from obtaining or losing control of subsidiaries or other businesses shall 
 
a. Be classified as operating activities
b. Be classified as investing activities
c. Be classified as financing activities
d. Not be reported
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