Spiceland Chpt 4 Assigned Homework Solutions

Spiceland Chpt 4 Assigned Homework Solutions - CHAPTER 7...

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Chapter 4 Homework Solutions – Spiceland Question 4-10 Cash includes not only currency, coins, balances in checking accounts, and checks and money orders received from customers, but also cash equivalents, defined as investments that mature within three months (such as money market funds, treasury bills, and certificates of deposits). Question 4-15 A bank reconciliation matches the balance of cash in the bank account with the balance of cash in the company’s own records by reconciling timing differences and errors. It is the possibility of errors, or even outright fraudulent activities, that make the bank reconciliation a useful cash control tool. Question 4-16 The two reasons are timing differences and errors. Timing differences arise when one party (the bank or the company) records a transaction at a different time than the other party. Errors are mistakes made by either the bank or the company. Question 4-17
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Spiceland Chpt 4 Assigned Homework Solutions - CHAPTER 7...

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