2010-09-05_043642_Iherna - 1) A cash equivalent is a...

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1) A cash equivalent is a short-term, highly liquid investment that is readily convertible into known amounts of cash and A . has a current market value that is greater than its original cost. B. bears an interest rate that is at least equal to the prime rate of interest at the date of liquidation. C. is so near its maturity that it presents insignificant risk of changes in interest rates. D . is acceptable as a means to pay current liabilities. 2) Which of the following is NOT considered cash for financial reporting purposes? A . Money orders, certified checks, and personal checks B. Coin, currency, and available funds C. Postdated checks and I.O.U.'s D . Petty cash funds and change funds 3) Which of the following items should NOT be included in the Cash caption on the balance sheet? A . Checks from other parties presently in the cash register B. Amounts on deposit in checking account at the bank C. Postage stamps on hand D . Coins and currency in the cash register 4) If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be reported as
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This note was uploaded on 06/09/2011 for the course A 621 taught by Professor Frank during the Spring '10 term at New Hampshire.

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2010-09-05_043642_Iherna - 1) A cash equivalent is a...

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