Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 24

Reporting Financial Assets
Explain how each of the following items is reported in a complete set of financial statements, including the accompanying notes.(In one or more cases,the item may not appearin thefinancial statements.) The answer to thefirst item is provided as an example.
a.Cash equivalents.
b.Cash in a special fund being accumulated as legally required for the purpose of retiringa specific long-term liability.
c.Compensating balances.
d.The amount by which the current market value of securities classified as available for sale exceeds their cost.
e.TheAllowance for Doubtful Accounts.
f.The accounts receivable turnover rate.
g.Realized gains and losses on investments sold during.the period.
h.Proceeds from converting cash equivalents into cash.
i.Proceeds from converting investments in marketable securities into cash.
Example : a.ash equivalents normally are not shown separately in financial statements.ather, they are combined with other types ofcash and reported under the caption"Cash and Cash Equiva-lents."A note to the statements often shows thebreakdown of this asset category.