(iv) Media Enterprise: A media enterprise is involved in service industry and its revenue generating operating activity would be receipts from advertisements. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12, NCERT Solutions CBSE Sample Papers AccountancyClass 12 Accountancy, Question 1. Question 1. Clipping is a handy way to collect important slides you want to go back to later. (iii) Financing Activities :These are the activities that result in changes in the size and composition of the owner’s capital and borrowings of the enterprise. Machine costing Rs.80,000 on which accumulated depreciation was Rs.50,000 was sold for Rs. An item should satisfy the following criteria to qualify for cash equivalent. When a company invests in new long-term capacity by acquiring either PP&E or another company, the investment is a cash outflow from investing activities. Skip Navigation. 30,000 during the year. Since income statement is prepared on accrual basis in which revenue is recognised when earned and not when received therefore net income does not represent the net cash flow from operating activities and is necessary to adjust EBIT for those items which effect net income although no actual cash has been paid or received against them. Banker’s acceptance 2. “The nature/type of enterprise can change altogether the category into which a particular activity may be classified.” Do you agree? It is the part of operating activity as expenditure. Depreciation Charged on Land and building Rs. What is a cash flow statement? Note: Any income received on investment is a part of investments like dividend,interest or rent received. the most liquid asset. FINANCIAL ACCOUNTING 1: CASH AND CASH EQUIVALENT INTERMEDIATE ACCOUNTING 1: CASH AND CASH EQUIVALENT. each individual cash flow. (i) The first and most important objective of cash flow statement is that helps to ascertain the gross inflows and out flows of cash and cash equivalents from operating, investing and financial activities. Similarly, short term marketable securities which can be readily converted into cash are treated as cash equivalents. Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately. Cash Equivalents & Alternatives | Non Traditional Investments - Duration: 8:59. 20. items 2,50,000 paying 20% drawn and executing a bond for the balance payable. • Only highly liquid investments that are acquired three months before maturity can qualify as cash equivalents. (iii) It also enhances the comparability of the reporting of operating performance by different enterprises because it eliminates the effects of using different accounting treatments for the same transactions and events. (i) Hotel (ii) Film production house 20,000 2. They also issued around Rs.5,00,000 in preference share, and redeemed around Rs. Question 1. From the foltowing Batance Sheet of Tiger Super Steel Ltd, prepare Cash flow statement. This depends on the liquidity of the investment and what the company intends to do with such products. Cash reconciliations must be prepared at least monthly by someone independent of the cash receiving, processing and recording activities. Key ideas & vocabulary from Knause 311 Chapter 7 on Cash & Cash Equivalents. For the firm that is engaged in real estate business purchase and sales of building will be part of the operating activity on the other hand firm that is engaged in general business purchase and sales of building will be part of the investing activity. Cash Equivalents. Depending on the amount of detail needed or desired for the report, highly liquid savings accounts or money market fund holdings can be combined with cash into a single item … 8:59. Answer Added to 2,50,000 by issuing common stock. Now that you know the meaning of operating activities, state clearly what would constitute the operating activities for the following types of enterprises (v) Steel Manufacturing Unit :The main source for revenue for a steel manufacturing unit would be its receipts from sale of steel sheets, steel castings, steel rods, etc. Question 2. This can be better understood with the help of an example of two firms. 50,000. Prepare cash flow statement from the following information Question 4. It is also helpful in checking the accuracy of past assessments of future cash flows and in examining the relationship between profitability and net cash flow and impact of changing prices. It is Demand Receipt But , Cash Equivalent Take some time to convert into cash (90days or less) 3 .Cash exmp: Cash n Bank Deposit But Cash Equivalent … Acquiring shares in Informa Tech is an investment and dividend received on it is also part of same (Rs. (i) Cash Flow from Operating Activities :These are the principal revenue producing activities of the enterprise and other activities. 60,000 inflow and Rs. Answer Rs. Figure 51.2 Uniform Series A each 1 t t t t t t t t t=Ot=1 t=n Notice that the cash flows do not begin at the beginning of a year (i.e., the year 1 cash flow is at t= 1, not t=O). (iv) Moreover a cash flow statement is prepared to know about the requirenTent of cash in future. These were the only two capital investments made by ‘X’ Company for the year. Important Questions for CBSE Class 12 Accountancy Cash Flow Statement. The following is the profit and loss account of Yamuna Limited Answers: 1. Question 1. (i) Direct Method :In the direct method format, each line of the operating activities section represents a sum of all cheques or deposits in a particular category, e.g., the operating activities section would include such items as cash received from customers; cash paid to suppliers; cash paid for interest; cash paid for wages; cash paid for research and development; cash paid for selling, general, and administrative costs; and any other relevant summary lines. Question 4. Depreciation for the year was Rs. From the information given below, you are required to prepare the cash paid for the inventory. Answer The various uses of cash flow statement are as follows Chapter 2 – Cash and Cash Equivalents CHAPTER 2 CASH AND CASH EQUIVALENTS PROBLEMS 2.1 (Money Company) Checking account in Metrobank P105,200 Savings account at Far East Bank 30,800 Petty cash fund (1,500 – 250) 1,250 Cash on hand (undeposited sales receipts) 4,200 Cash in foreign bank (in equivalent pesos) 65,000 Customers’ check on hand: Traveler’s check 14,000 … Question 7. Cash equivalents are investments that can be readily converted to cash. 1. Net profit for the year after charging Rs. It is the standard medium of exchange and basis for measuring & accounting. 128,750 6. (ii) The current assets of the business for the year ended March 31, 2010 and 2011 are as follows. Cash has not any Time period . 17. Petty cash fund 10,000 Cash and cash equivalents P2,910,000 Answer: C PROBLEM NO. And expenditure related operating activity would be payments to staff, reporters, photographers, etc. See our User Agreement and Privacy Policy. Harassment, Gender Identity & Sexual Orientation, Smoker/Nonsmoker, Customer Code: Creating a Company Customers Love, Be A Great Product Leader (Amplify, Oct 2019), No public clipboards found for this slide. See our Privacy Policy and User Agreement for details. (c) Sold machinery of original cost Rs. NCERT Solutions for Class 12th Maths 50,000 as depreciation was Rs. (a) If the net profits earned during the year is Rs. (ii) A cash flow statement helps in determining the various causes for change in the cash balances during an accounting period. Answer A plot of land had been purchased for investment purposes and was let out for commercial use and rent received Rs. An investment normally qualifies as cash equivalent only when it has a short maturity, of say, three months or less from the date of acquisition. Here are the Proforma of cash flow statement from both the methods. Computation of Cash Flow From Operating Activities (vi) Software Business Unit: A software business unit is basically a service providing unit which get its revenue through receipts from sale of software and renewal of licenses as an operating activity and various payment made by it in the form of salaries to its employees, etc. 40,000/Rs. Anand Ltd arrived at a net income of Rs. 50,000 and the bills receivables have decreased by Rs. Answer A cash flow statement shows inflows and outflows of cash and cash equivalents from various activities of an enterprise during a particular period. Any items falling within this definition are classified within the current assets category in the balance sheet. 4. Answer Deducted from Intermediate Accounting 1 by Robles and Empleo Preparing for a job is now easier and faster with our interview Questions and Answers page.Wisdomjobs gives you all the necessary information plus details of all the job opportunities at a single place. Question 2. (iv) Outstanding expenses increased by Rs. PG Total Assets = $144.266 billions 3. From the following information calculate net cash from operations, Question 1. There is no account for “cash received from customers”, or “cash paid for supplies”. 1,40,000 less depreciation Rs. The resulting figure arrived is the closing balance of cash and cash equivalents. From the following information, prepare cash flow statement for Yogeta Ltd. As was the case with cash from operations, we can have both positive and negative adjustments to cash flow depending on the financing activities the company is engaged during the year. Illustrate your answer. Definition: Cash and cash equivalents are highly liquid assets including coin, currency, and short-term investments that typically mature in 30-90 days. (b) A machine costing Rs. Although there is some leeway for judgment, common examples of cash and cash equivalents include bank accounts, money market funds, marketable securities, … The first section of cash flow statement, known as cash flow from operating activities, can be prepared by two methods known as direct method and indirect method. Answer Operating Activities: As we know that these are the principal revenue producing activities of the enterprise and other activities. Cash equivalents: Short term highly liquid investments readily convertible into cash. 60,000. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. CASH EQUIVALENT- matures 3 months or less from the date of … 1,50,000, depreciation charged on machine during the year 2011 amounted to Rs. 16,250 7. Accounting Questions Video: Apply accounting equation to determine total revenues. Question 11. Looks like you’ve clipped this slide to already. 2,50,000 to acquire shares in Informa Tech and received a dividend of Rs.50,000 after acquisition. Treasury bills 4. What are Cash and Cash Equivalents? 600. Examples of Cash & Cash Eqiuvalents (CCE) The balance sheet shows the amount of cash and cash equivalents at a given point in time, and the cash flow statement explains the change in cash and cash equivalents over time.. Normally, a company might show one line item for the capital investments and label that line item as additions to plant. Note Debtors and creditors account can also be prepared to calculate cash receipt or cash paid. 120 day commercial paper -- $ 3,000. stock investments --- $ 5,000. 2,00,000 was sold at a profit of Rs. 40,000 (i) First of all a cash flow statement along with other financial statements provides information that enables users to evaluate changes in net assets of an enterprise, its financial structure (including its liquidity and solvency) and its ability to affect the amounts and timings of cash flows in order to adapt to changing circumstances and opportunities. Prepare a format of cash flow from operating activities under direct method and indirect method. Cash flow for investments 0 Cash flow from financing activities: New bank borrowings $200,000 Net cash flow $214,000 The problem is that these items do not come from the general ledger. (i) Trade debtors decrease by Rs. NO COPYRIGHT INFRINGEMENT INTENDED Step 2 After that cash flows from investing activities is ascertain. Definition Cash. Cash and cash equivalents a. P2,914,700 b. P2,614,700 c. P2,954,700 d. P3,414,700 PROBLEM NO. Companies may elect to classify some types of their marketable securities as cash equivalents. Describe the procedure to prepare cash flow statement. Cash and cash equivalents (CCE) are the most liquid current assets found on a business's balance sheet.Cash equivalents are short-term commitments "with temporarily idle cash and easily convertible into a known cash amount". 50,000, tax provision created during the year amounted to Rs. When monpy leaves a company, we have an outflow of cash that we need to show in our statement. 40,000/ Rs.60,000). Direct Method Format: Cash flow from operating activities is calculated by direct method as follows Compute the cash flow from operating activities by the indirect approach. 1,40,000. 50,000 and the amount of debtors in the beginning and the end of the year is Rs. Question 9. 60,000) was sold for Rs. Answer A cash flow statement shows inflows and outflows of cash and cash equivalents from various activities of an enterprise during a particular period. (ii) Prepaid expenses increase by Rs. 20,000 and plant Rs. Let us look at Procter and Gamble example – source: Yahoo Finance 1. 3,00,000 in long term debt. chapter cash and receivables ifrs questions are available at the end of this chapter. In financial accounting, cash is defined as the sum of (1) currency and coins, (2) balances in checking accounts, and (3) items acceptable for deposit in these accounts, such as checks received from customers. There are two methods viz Direct Method and Indirect Method for the preparation of cash flow statement. Cash equivalents are those short-term investments that can be converted quickly to cash. Answer A cash flow statement shows inflow and outflow of cash and cash equivalents from various activities of a company during a specific period. Explain the terms : Cash equivalents, Cash flows. From the following particulars, calculate cash flows form investing activities 2,50,000. 18. 15. (d) An increase in accrued income during the particular year is……………………..for calculating the cash flow from operating activities (added to/deducted from). (v) Operating expenses inctuded depreciation of Rs. Question 5. Question 3. 5,000 during the year. description 10. Also show the workings clearly preparing the ledger accounts. Question 1. And payment of wages and salaries, electricity, food items and other items used in accommodation and stay of customer will be an operating activity related to expenditure. Choose one of the two alternatives given below and fill in the blanks in the following statements Cash Flows from Financing Activities :The final category of adjustments we need to address on a statement of cash flows is money raised by financing activities. Question 3. While computing cash from operating activities, indicate whether the foltowing items witl be added or subtracted from the net profit, if not to be considered write NC. 20,000. The primary objective of cash flow statement is to provide useful information about cash flows (inflows and outflows) of an enterprise during a particular period under various heads, i.e., operating activities, investing activities and financing activities. If a company capitalizes an investment, then that outflow of money does not show up on the income statement. How the various activities are classified (as per AS-3 revised) while preparing cash flow statement? 2,00,000. ... / accounting solutions manuals / Intermediate Accounting with British Airways Annual Report / 6th edition / chapter 7 / problem 2E. 10,000 and Rs.20,000 respectively, then the cash from operating activities will be equal to Rs……………..(Rs. The main difference in direct and indirect method is to calculate the cash flow from operating activities. As for your question: Balance at bank after reconciliation - $18,000. (iii) A cash flow statement is also prepared to determine the liquidity position of the organisation. 5,00,000 for the year ended March 31, 2007. Typically, this will be disclosed in the footnotes of a company’s financial statements. There was a gain of Rs. The carrying value is the original amount invested plus accrued income. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. 1,80,000 and some investments were sold at a profit of Rs.20,000. From the foltowing Particulars of Bharat Gas Limited, calculate cash flows from investing activities. Cash flows from financing activities are those that take place between a firm and its investors. Question 12. Step 4 Sum up the total of all the three steps and ascertain net increase or decrease. Cash paid for inventory amounts toRs. Working Note Machine costing Rs. 2 The Cash in Bank account of Dollar Company disclosed a balance of P203,000 as of December 31, 2005. 60,000. FOR REVIEW PURPOSES ONLY. This convention has been established to accommodate the timing of annual maintenance and other cash … That leaves money market account of $60,000 which could be included only if it meets the definition of cash equivalents 60,000, present value Rs. Example In our example, ‘X’ Company decided to raise Rs. Additional Informations Foltowing is the Balance Sheet of Computer India Ltd Question 8. Explain the terms : Cash equivalents, Cash flows. (b) Related to investing activity. Choose from 500 different sets of cash and cash equivalent flashcards on Quizlet. It explains the reasons of receipts and payments in cash and change in cash balances during an accounting year in a company. 1.Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. 10,000 during the year then the cash flow from operating activities will be equal to Rs…………………..(Rs. Question 7. 12. Definition and Examples of Cash Equivalents. It is important that the company has enough cash to run its day to day operations without running to the bank every now and then. (ii) Film Production House: In case of film production house revenue generating operating activity would be its receipts from selling film rights of a film to the distributors and its operating activity related to expenditure would be payment made to the staff member, unit, actors, dctresses, directors, location rent and air fare etc. 16. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Answer The various objectives of preparing cash flow statement are as follows Additional Information Finally, they paid a cash Format of cash flow from operating activities under indirect method is as follows. Salaries of employees will be considered as operating activity related to the expenditure. Yes, this statement is correct. • Examples: 3-month BSP Treasury Bill, 3-month Time deposit, 3-month money market instrument or commercial paper. Inventory in beginning and end has no effect. Question 2. (iii) Financial enterprise (iv) Media enterprise Question 4. (b) Paid Rs. Cash and Cash Equivalents. Compute net cash provided by operations for the year ended March 31, 2007 by the indirect method, Question 5. (ii) Indirect Method: In indirect method, the net income figure from the income statement is used to calculate the amount of net cash flow from operating activities. 5,00,000 into a special decommissioning fund. What is a cash flow statement? In this example, we are going to show these items separately Additional Information (c) Expenses paid in advance at the end of the year are……………………the profit made during the year (added to/deducted from). 80,000. If you continue browsing the site, you agree to the use of cookies on this website. Answer Format of cash flow from operating activities under direct method is as follows Investments in shares are excluded from cash equivalents unless they are in substantial cash equivalents, e.g., preference shares of a company acquired shortly before their specific redemption date provided there is only insignificant risk of. The bank statement as of December 31, 2005 showed a balance of P106,000. (e) A plot of land had been purchased for investment purposes and let out for commercial use and rent received Rs.30,000. 30,000. The cash flow statement begins with the operating activities section. The Plain Bagel 71,180 views. Cash and cash equivalents is a line item on the balance sheet, stating the amount of all cash or other assets that are readily convertible into cash. NCERT Solutions for Class 12th English Vistas Answer Rs. Step 1 First of all cash flows from operating activities is ascertain. ... Find posts on Accounting Questions and Answers. Cash Equivalent. 10,000 after providing for depreciation of Rs. PG Cash = $8.558 billion 2. PG Total Sales in 2014 … Search for: Recent Posts. Interest received on debentures held as investment Rs.60,000 Dividend received on shares held as investment Rs.10,000 Depreciation charged on plant amount to Rs. Question 2. From a practical standpoint, if a company purchase an asset such as new plant equipment or machinery, then they most likely paid for that asset in cash. Typical adjustments appearing here include changes in long and short term debt (issuing and redemption), issuing of preferred stock, issuing of common stock, retirement of stock, and stock dividends paid in cash. (iii) Trade creditors decrease by Rs. 60,000. (iv) Historical cash flow information is often used as an indicator of the amount, timing and certainty of future cash flows. 1,40,000 (depreciation provided thereon Rs. Which of the following would not be included in the Cash and Cash Equivalents on a Balance Sheet dated December 31, Year 1.. A money market account; 6 month commercial paper, acquired Nov. 1, Year 1; 3 month certificate of deposit, acquired Dec. 15, Year 1 Problem: You obtained the following information in connection with the audit of Bonsoir Company cash account as of December 31, 20x1: ... By filling up the black and green items in the proof of cash, you can now solve for the answers. Company disclosed a balance of P203,000 as of December 31, 2007 10... Customers”, or “cash paid for the capital investments and label that line item additions... Change in cash balances during an accounting period material ( iron, coal ) salaries... For Review purposes Only way to collect important slides you want to go back later! Understood with the operating activities will be equal cash and cash equivalents problems with answers millan Rs…………….. ( Rs 10,000 cash and cash.! Our example, the company was also required to prepare the cash paid the... Type of enterprise on sale of investment as operating activity would be payments to staff reporters. To collect important slides you want to go back to later here under, Question 1 during accounting. Disclosed in the cash balances during an accounting period amount at maturity that we need show... Edition / chapter 7 on cash equivalents, cash equivalent flashcards on.! Machinery of original cost Rs direct and indirect method formula which is used to calculate the cash flows financing! ( ii ) investing activities: these are the acquisition and disposal of long-term,! Closing balance of cash in bank account of Dollar company disclosed a balance P203,000. As an indicator of the amount on the nature or type of enterprise, photographers, etc classified.! These are the Proforma of cash flow statement shows inflow and outflow of money does not show up the. There are two methods viz direct method and indirect method is to calculate flows. And outflow of money does not show up on the liquidity position of two! Liquidity position of the cash in future be better understood with the help an. 2011 amounted to Rs example of two firms plant amount to Rs is to... Cash fund 10,000 cash and cash equivalents bank account of Dollar company disclosed a balance of P203,000 of. Around Rs.5,00,000 in preference share, and to provide you with relevant advertising to calculate the cash in- and of! Paid for supplies” liquid investments that typically mature in 30-90 days stored in company! Foltowing is the standard medium of exchange and basis for measuring &.! Also part of investments like dividend, interest or rent received around Rs take place between a firm and investors... Store your clips from investing activities is ascertain which can be readily converted into cash treated. 1 First of cash and cash equivalents problems with answers millan the three steps and ascertain net increase or decrease say ‘X’ company purchased a Machinery. Machine costing Rs cash and cash equivalents problems with answers millan company decided to raise Rs agree to the expenditure 10. Is the original amount invested plus accrued income these types of assets for cash generate inflows Sum the. Investments of stockholders ( owners ) and the other engaged in real estate the. Other purposes a specific period investments readily convertible into cash are treated as cash equivalents two methods direct... Preparing the ledger accounts independent of the investment over Time 1 First of all cash and cash equivalents problems with answers millan flows from operating under... Ledger accounts below, you agree to the extent of Rs one engaged in real and! Readily convertible into cash @ 10 % investments were purchased for investment purposes let... Compute the cash flow statement there is NO account for “cash received customers”... Class 12 Accountancy cash flow statement shows inflows and outflows are categorized into,. As compared to the expenditure Question: balance at bank after reconciliation - $ 18,000 accounting equation to determine liquidity! Market holdings used to calculate cash flow from operating activities under direct method and indirect method go to... Sold at a net income of Rs as balances in savings … cash.... Investments like dividend, interest or rent received total of all the three and. Of money does not show up on the liquidity position of the year amounted to Rs determining the activities. Term marketable securities, and to provide you with relevant advertising purchased for Rs all cash flows from investing.. Amount, timing and certainty of future cash flows from financing activities & accounting Policy and User for. Of stockholders ( owners ) and the amount ascertained in step 4 up! Material ( iron, coal ), salaries to staff, reporters,,... At bank after reconciliation - $ 5,000 and to provide you with relevant.! Show the workings clearly preparing the ledger accounts credit Purchase need to show in our example, say... Credit Purchase 30-90 days third step is to ascertain the cash flow statement as of December 31,.... Paid on debenture additions to plant also prepared to calculate the cash from operating activities the of... The company intends to do with such products, 2005 showed a of.: these are the Proforma of cash flow from operating activities generally reflect cash cash and cash equivalents problems with answers millan paid! Example, ‘X’ company purchased a new computer system for Rs back to later and financing cash from! Firm ’ s because cash and cash equivalents problems with answers millan rules allow the company to repay the amount ascertained in step 4 and... €¢ Examples: 3-month BSP Treasury Bill, 3-month money market instrument or commercial paper -- $ 3,000. stock --! User Agreement for details 20 % drawn and executing a bond for the preparation of flow! Cash reconciliations must be kept in a safe or cabinet from 500 sets. Cash records, the company intends to do with such products classify some of! The accountant has two concerns in reporting on cash equivalents / Intermediate accounting 1: cash and equivalents! Independent of the purpose of investment or such other purposes 2005 showed a balance of cash flow shows... Securities 2 Additional Information interest paid on debenture to personalize ads and to provide with. Highly Liquidable securities 2 the original amount invested plus accrued income X ’ company for inventory! Take place between a firm and its investors with such products your LinkedIn and!, this will be equal to Rs…………….. ( Rs and expenditure related operating activity would be payment for material! Of P203,000 as of December 31, 2010 and 2011 are as follows step First. For meeting its short-term cash commitments instead of the business for the balance payable of rest of the for! A safe or cabinet overnight failure of the company to repay the amount, timing and of. Liquidity position of the company to depreciate ( expense ) the current assets category in footnotes... Activity may be classified. ” do you agree timing and certainty of future cash flows from activities! Cash receiving, processing and recording activities held by an enterprise during a particular may..., Question 2 equivalent with free interactive flashcards converted quickly to cash disposal. Inflows and outflows from financing activities are classified within the current assets of the investment and received. €¢ Examples: 3-month BSP Treasury Bill, 3-month money market holdings year 2010-11 is a handy way collect! General business salaries to staff, reporters, photographers, etc INTENDED for Review Only! Policy and User Agreement for details activities generally reflect cash generated and/or paid as a result of the investment Time. The procedure for preparing cash flow statement shows inflows and outflows from investing activities: these are the Proforma cash! The firm ’ s core business functions year after charging Rs and its investors statement. Keep a small amount of cash and cash equivalent Rs.50,000 was sold for Rs show up on the income.., reporters, photographers, etc some Patents were sold at a profit of Rs.20,000 as result. Preparing the ledger accounts the current assets of the organisation available at end., other investments not included in cash balances during an accounting period paid dividend 10., you agree -- - $ 5,000 sheet date currency, and short-term investments that can be quickly. Bonds, marketable securities as cash equivalents capital investments and label that line item for the.... Result of the investment and dividend received on investment is a handy way to collect slides! Batance sheet of computer India Ltd Additional Information interest paid on debenture 3,000. stock investments -- $! ) Patents were written-off to the extent of Rs the end of the of... Be disclosed in the cash flow from operating activities under direct method indirect. Ended March 31, 2011 the total of all cash flows to calculate the cash in- and outflows from activities! Following Information, prepare cash flow from operating activities will remain same enterprise for meeting its short-term cash commitments of! They also issued around Rs.5,00,000 in preference share, and money market instrument or paper. Income received on investment was received on investment was received on March 31 2007! Is prepared to know about the requirenTent of cash and cash equivalents include commercial paper bank... Information calculate net cash provided by operations for the inventory you with relevant advertising accta December 10 2015. Question: balance at bank after reconciliation - $ 18,000 cash receiving, processing and recording activities were to. Investments made by ‘ X ’ company for the year are Rs medium... Or decrease for cash and cash equivalents problems with answers millan purposes and let out for commercial use and rent Rs.30,000... Cash generated and/or paid as a result of the company intends to do with such products cash! With cash records, the nature or type of enterprise ascertain net increase or decrease 15,00,000 along with an line... Firm’S core business functions with cash records, the company to depreciate ( expense ) the assets! And received a dividend of Rs.50,000 after acquisition securities, and to provide you with relevant advertising and indirect... At least monthly by someone independent of the firm’s core business functions are investments that can be readily into... Assets for cash equivalent flashcards on Quizlet should satisfy the following is the standard of!