Accounting and Reporting Cash Flashcards
Week 4 Objective 3
1
Q
Does “cash” only mean dollars and cents?
A
No, cash includes currency, coins, savings and checking accounts, and negotiable instruments like checks and money orders.
2
Q
Where is cash reported?
A
The balance sheet and the statement of cash flows. Increased by a debit, increased by a credit.
3
Q
What are “cash equivalents”?
A
all highly liquid investments with an original maturity of 3 months or less at date of inception
