BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
credit accounts
|
|
|
checks
|
|
|
payments on credit
|
|
|
physical assets
|
Detailed explanation-1: -In accounting, cash includes coins; currency; undeposited negotiable instruments such as checks, bank drafts, and money orders; amounts in checking and savings accounts; and demand certificates of deposit.
Detailed explanation-2: -Cash includes legal tender, bills, coins, checks received but not deposited, and checking and savings accounts.
Detailed explanation-3: -What is Cash? Cash is bills, coins, bank balances, money orders, and checks. Cash is used to acquire goods and services or to eliminate obligations. Items that do not fall within the definition of cash are post-dated checks and notes receivable.
Detailed explanation-4: -Items like postdated checks, certificates of deposit, IOUs, stamps, and travel advances are not classified as cash.
Detailed explanation-5: -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 include bank accounts and marketable securities such as commercial paper and short-term government bonds.