Question 4 Which of the following items is NOT included in the cash and cash equivalent A

Accounting Jan 18, 2021

Question 4 Which of the following items is NOT included in the cash and cash equivalent A. Coins and currency B. Certified checks C. Treasury bills D. Travel advances paid to staff

Expert Solution

Answer:

Option (D) Travel advances paid to staff is the correct answer.

Explanation:

Coins and currency, Certified checks and treasury bills etc are considered as cash and cash equivalents as all this are highly liquid assets. They can be liquidated as cash. Whereas Travel advances paid to staff falls in the category of advances under the head of current asset. Hence option (D) is the correct answer.

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