Your audit of the December 31, 2006, financial statements of Mato Corporation reveals the following:1. Current account at PBCom P (35, 000)2. Current account at PNB 65, 0003. Treasury bills (acquired 3 months before maturity) 200, 0004. Treasury bills (maturity date is 12/31/07) 500, 0005. Payroll account 175, 0006. Foreign bank account-restricted (translated using the 12/31/06 exchange rate) 900, 0007. Postage stamps 6008. Employees checks marked DAIF 10, 0009. IOU from the vice-president 50, 00010. Credit memo from a supplier for a purchase returns 25, 00011. Travelers check 60, 00012. Money order 10, 00013. Companys check dated 12/30/06 but not mailed at year-end 30, 00014. Petty cash fund (P4, 000 in currency and expense receipts for (P6, 000) 10, 000 MATO CORPORATIONS adjusted cash and cash equivalents balance at December 31, 2006 is:

FINANCIAL ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Your audit of the December 31, 2006, financial statements of Mato Corporation reveals the following:1. Current account at PBCom P (35, 000)2. Current account at PNB 65, 0003. Treasury bills (acquired 3 months before maturity) 200, 0004. Treasury bills (maturity date is 12/31/07) 500, 0005. Payroll account 175, 0006. Foreign bank account-restricted (translated using the 12/31/06 exchange rate) 900, 0007. Postage stamps 6008. Employees’ checks marked “DAIF” 10, 0009. IOU from the vice-president 50, 00010. Credit memo from a supplier for a purchase returns 25, 00011. Traveler’s check 60, 00012. Money order 10, 00013. Company’s check dated 12/30/06 but not mailed at year-end 30, 00014. Petty cash fund (P4, 000 in currency and expense receipts for (P6, 000) 10, 000 MATO CORPORATION’S adjusted cash and cash equivalents balance at December 31, 2006 is:

A	P 560, 000
B	P 544, 000
C	P 514, 000
D	P 509, 000

Explanation:

Detailed explanation-1: -What are Cash Equivalents? Cash includes legal tender, bills, coins, checks received but not deposited, and checking and savings accounts. Cash equivalents are any short-term investment securities with maturity periods of 90 days or less.

Detailed explanation-2: -Petty cash appears within the current assets section of the balance sheet. This is because line items in the balance sheet are sorted in their order of liquidity. Since petty cash is highly liquid, it appears near the top of the balance sheet.

Detailed explanation-3: -Petty cash refers specifically to money-literally, coins and bills-that a company keeps on hand for small outlays, usually because using cash is easier than using a check or credit card. Cash on hand is any accessible cash the business or liquid funds have.

There is 1 question to complete.

BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING