ASSETS

Question 1

What are types of Cash?

Answer 1

Money Orders
Checks
Checking
Savings
Petty Cash

Question 2

What are Cash Equivalents?

Answer 2

Cash Equivalents are cash investments that have high liquidity. They must be acquired 3 months to maturity.

Cash Equivalents must follow the market price

Question 3

Are Trading and Available for sale security value determined at fair value?

Answer 3

yes

Question 4

Are Accounts and trade receivable valued at fair value?

Answer 4

no

Net realized Value

Question 5

Define Net Realized Value

Answer 5

the value of an asset that can be realized upon the sale of the asset.

Question 6

What type of inventory system does an accountant need to update inventory after each transaction?

Answer 6

Perpetual system

does require adjustments

Question 7

What type of inventory system is needed to update inventory each year?

Answer 7

Periodic system

does not required adjustments

Question 8

When is construction in process an asset?

Answer 8

Because the project costs are incurred

However it is a Cr when it is “billed on CIP” because it requires more economic sacrifice.