ACC%20102%20Module%201%20Homework%20Answer%20Key%20Chapter%206

ACC%20102%20Module%201%20Homework%20Answer%20Key%20Chapter%206

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ACC 102 – B1 Homework Answer Key Module 1: C hapter 6 Quick Study 6-3 1. The cash category includes currency and coins along with the amounts on deposit in bank accounts, checking accounts, and savings accounts. Cash also includes items that are acceptable for deposit in these accounts including customer checks, cashier checks, certified checks, and money orders. 2. The cash equivalents category includes short-term, highly liquid investment assets meeting two criteria: (1) readily convertible to a known cash amount and (2) sufficiently close to their due dates so that their market value is not sensitive to interest rate changes. Usually only investments purchased within 3 months of their due date satisfy these criteria. Examples of cash equivalents include U.S. Treasury bills and money market funds. 3. Liquidity refers to a company’s ability to pay for its near-term obligations. Quick Study 6-6 (1) (2) a. ( i ) Book ( ii ) Addition Adjusting entry required b. ( i ) Book ( ii ) Subtraction
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ACC%20102%20Module%201%20Homework%20Answer%20Key%20Chapter%206

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