NU Corporation placed P 2.5 million in the money market for 60days subject to pre- termination. It is the company's policy to treat as cashequivalents all highly liquid instruments with maturity of 4 months or lessfrom the date of acquisition. The P 2.5 million should be * O Treated as short-term receivable with the appropriate disclosure in the notes to financial statements. O Recorded as part of debt investments at fair value through profit or loss without need of anydisclosure. Included as part of cash and cash equivalents and without any appropriate disciosure in the notes to O financial statements should state the company's criteria for classifying financial instruments as cash equivalents.
NU Corporation placed P 2.5 million in the money market for 60days subject to pre- termination. It is the company's policy to treat as cashequivalents all highly liquid instruments with maturity of 4 months or lessfrom the date of acquisition. The P 2.5 million should be * O Treated as short-term receivable with the appropriate disclosure in the notes to financial statements. O Recorded as part of debt investments at fair value through profit or loss without need of anydisclosure. Included as part of cash and cash equivalents and without any appropriate disciosure in the notes to O financial statements should state the company's criteria for classifying financial instruments as cash equivalents.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:NU Corporation placed P 2.5 million in the money market for 60days subject to pre-
termination. It is the company's policy to treat as cashequivalents all highly liquid instruments
with maturity of 4 months or lessfrom the date of acquisition. The P 2.5 million should be *
O Treated as short-term receivable with the appropriate disclosure in the notes to financial statements.
O Recorded as part of debt investments at fair value through profit or loss without need of anydisclosure.
Included as part of cash and cash equivalents and without any appropriate disclosure in the notes to
O financial statements should state the company's criteria for classifying financial instruments as cash
equivalents.
Included as part of cash and cash equivalents and the appropriate disclosure in the notes to financial
statements should state the company's criteria for classifying financial instruments as cash equivalents.
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