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sir
if there is opening and closing for treasury bills and you haven’t told that these are taken as cash and cash equivalents so we will bring the net figure to just investing activities?or we need to bring it to opening and closing of cash and cash equivalents
like
short term treasury bills C/B 120 O/B 50
cash nil 122
overdraft 136 nilc & c eq bf (50+122) 172
c& c eq cf(120-136) (16)
is this wrong?or
c & c eq bf 122
c & c eq eq (136)c & c eq bf (50+122) 172
c& c eq cf(120-136) (16)This is correct – it’s possible that the treasury bills have a maturity date given
If so, then you would exclude from cash and cash equivalents those bills that mature more than three months after the financial reporting date
sir
i did it correctly then as you said but in kit its opposite of that
they just net off the opening and closing of treasury bills and included as purchase in investing activities (120-50) 70.
they didn’t include it in cash and cash equivalents
c & c eq bf 122
c & c eq eq (136)
like this
there was not note or any maturity date given
it was just shown as short term treasury billsThat’s interesting! I would have included them as cash or cash equivalent, particularly since it made the point of calling them “short-term treasury bills”
Which exam was Charmer in?
if it wasn’t short term then we should have net it off and included it in investing activities
right?its in kaplan kit session 2013/2014 question number is 61
i couldn’t find the attemptI have tried looking for the Charmer question and thought that I’d actually found it on a Chinese website but the site showed only question 1 Hanford and Stopple) and to continue I would have to log in to the site – at least that’s how I interpreted the Chinese writing!
So, sadly, I’m not going to get any further with the task of answering your question, sorry 🙁
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