LOVELY Company reports the following information as of the end of the year:(1) Investment securities of P1,500,000. These securities are ordinary shareinvestments in companies that are traded in the Philippine Stock Exchange. As aresult, the shares are very actively traded in the market.(2) Investment securities of P2,000,000. These securities are government treasurybills. The treasury bills have a 1-year term and purchased on December 31, at whichtime they had three months to go until they mature.(3) Cash of P2,500,000 in the form of coin, currency, savings accounts, petty cashand checking accounts.(4) Investment securities of P300,000. These securities are commercial paper (short-term IOUS from other companies). The term of the paper is nine months and theywere purchased on December 31 at which time they had four months to go until theymature.How much should be reported as cash and cash equivalents at year-end?O 6,000,0004,500,000O 6,300,0004,800,000

Ans. Cash in hand, bank, commercial paper, treasury bill, short term government bonds with a…

OVELY Company reports the following information as of the end of the year 1) Investment securities of P1,500,000. These securities are ordinary share vestments in companies that are traded in the Philippine Stock Exchange. esult, the shares are very actively traded in the market. 2) Investment securities of P2,000,000. These securities are government tr ills. The treasury bills have a 1-year term and purchased on December 31, me they had three months to go until they mature. 3) Cash of P2,500,000 in the form of coin, currency, savings accounts, petty nd checking accounts. 4) Investment securities of P300,000. These securities are commercial pap erm IOUS from other companies). The term of the paper is nine months and vere purchased on December 31 at which time they had four months to go u nature. low much should be reported as cash and cash equivalents at year-en O 6,000,000 D 4,500,000 O 6,300,000 24 800.000

OVELY Company reports the following information as of the end of the year 1) Investment securities of P1,500,000. These securities are ordinary share vestments in companies that are traded in the Philippine Stock Exchange. esult, the shares are very actively traded in the market. 2) Investment securities of P2,000,000. These securities are government tr ills. The treasury bills have a 1-year term and purchased on December 31, me they had three months to go until they mature. 3) Cash of P2,500,000 in the form of coin, currency, savings accounts, petty nd checking accounts. 4) Investment securities of P300,000. These securities are commercial pap erm IOUS from other companies). The term of the paper is nine months and vere purchased on December 31 at which time they had four months to go u nature. low much should be reported as cash and cash equivalents at year-en O 6,000,000 D 4,500,000 O 6,300,000 24 800.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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