Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Items classified as "cash" on the balance sheet: a

Items classified as "cash" on the balance sheet: a

Business

Items classified as "cash" on the balance sheet:

a. are limited to coins, currency, or bank drafts

b. must be available to pay current obligations

c. maybe subject to contractual restrictions

d. do not include negotiable checks or bank drafts

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The correct answer is b. must be available to pay current obligations.

 

An item would be recognized as cash if this is available for the company's current debts. If the cash is restricted and intended for the payment of long-term obligations, it would be reclassified.

Cash is not limited to coins, currency, or bank drafts. There are also dated checks, treasury bills, etc. This should not have restrictions.

Related Questions