9. Which of the following shall not be classified as cash equivalent? a. Equity securities bought three months before year end b. Three months treasury bills c. 90 days money market instrument d. Three year treasury bills bought 60 days before its maturity 10. Which of the following should be presented as part of investing activities of statement of cash flow? a. Issuance of bonds in exchange of equipment b. Cash payment for securities held for trading c. Cash receipts from sale of equipment d. Cash receipts from sale of trading securities 11. Financing activities involves transactions related to a. Current assets used to pay current obligation b. Transactions between shareholders’ and entity c. Short term liabilities used to finance the company’s operation d. Assets used in production of entity’s product 12. Which of the following statements are true? I. Investing activities are presented using direct method in the statement of cash flows. II. Financing activities are presented using direct method in the statement of cash flows. III. Investing activities are presented using indirect method in the statement of cash flows. IV. Financing activities are presented using indirect method in the statement of cash flows. a. I and II b. II and III c. I and IV d. III and IV 13. A manufacturer at the end of its fiscal year recorded the following data below: Direct labor P800,000 Indirect labor 100,000 Manufacturing overhead 160,000 Selling and other expenses 80,000 Raw materials used 140,000 What is the total manufacturing cost of the manufacturer?a. P960,000 b. P1,280,000 c. P1,100,000 d. P1,200,000
9. Which of the following shall not be classified as cash equivalent?
a. Equity securities bought three months before year end
b. Three months treasury bills
c. 90 days
d. Three year treasury bills bought 60 days before its maturity
10. Which of the following should be presented as part of investing activities of statement of cash flow?
a. Issuance of bonds in exchange of equipment
b. Cash payment for securities held for trading
c. Cash receipts from sale of equipment
d. Cash receipts from sale of trading securities
11. Financing activities involves transactions related to
a. Current assets used to pay current obligation
b. Transactions between shareholders’ and entity
c. Short term liabilities used to finance the company’s operation
d. Assets used in production of entity’s product
12. Which of the following statements are true?
I. Investing activities are presented using direct method in the statement of
II. Financing activities are presented using direct method in the statement of cash flows.
III. Investing activities are presented using indirect method in the statement of cash flows.
IV. Financing activities are presented using indirect method in the statement of cash flows.
a. I and II
b. II and III
c. I and IV
d. III and IV
13. A manufacturer at the end of its fiscal year recorded the following data below:
Direct labor P800,000
Indirect labor 100,000
Manufacturing overhead 160,000
Selling and other expenses 80,000
Raw materials used 140,000
What is the total
b. P1,280,000
c. P1,100,000
d. P1,200,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
