Deck 3

Question 1

1. What is the definition of Group and Composite?

2. Can you report G/L from sale of Group/Composite?

Answer 1

1. Group=Similar Composite=Dis-Similar
2. NO G/L from sale of Group/Composite
   Je’s:
   Dr. Cash (AMT Received)
   Dr. A/D (PLUG)
   Cr. Asset @ Historical cost

Question 2

Definitions of Cash

Answer 2

1. Cash (on hand)

2. Demand deposit of cash (Debit card/checking account)

Question 3

Cash Equivalents definations

Answer 3

• Short term, *highly liquid investments with *very little risk
• W/ maturity 3 months or less from DATE OF PURCHASE

Question 4

Cash Equivalents examples

Answer 4

• T Bills (Bill Clinton increased cash equivalents)
• Commercial paper
• Money Market Funds (trading)
• Petty cash
• Others (that fit in cash equivalents definition)

Question 5

Current assets and Current liabilities Definaton

Answer 5

Current Assets=ALL Current asset section SANS Inventory

Current Liabilities=ALL Current liability section