FAR

Question 1

Which of the following errors would cause unequal totals in the trial balance?

Answer 1

a. The firm records P2,100 received from a customer in advance of delivery of goods as a debit of P100 to cash and credit of P2,100 to sales.
b. The firm fails to enter the cost of the electric current used during the month as an expense and fails to recognize the P2,200 owed to Meralco.
c. All these errors will cause unequal trial balance totals.
d. None of these errors will cause unequal trial balance totals

Question 2

Which of the following best qualified as a cash equivalent?

Answer 2

a. A firm’s investment in “held to maturity” government treasury bonds that mature in 5 years. b. A firm’s equity investment in an unconsolidated subsidiary of a privately held firm.c. A firm’s investment in government treasury bills.d. All of these answer