Assume Young Company holds the following assets at year-end and classifies as cash equivalents everything allowed by professional standards.

What would be the total cash equivalents at year-end for Young Company?
A) $80,000
B) $100,000
C) $120,000
D) $140,000

Question

Assume Young Company holds the following assets at year-end and classifies as cash equivalents everything allowed by professional standards.

What would be the total cash equivalents at year-end for Young Company?
A) $80,000 
B) $100,000 
C) $120,000 
D) $140,000

Quizplus · Accepted Answer

The total cash equivalents would be the sum of the money market funds ($50,000), commercial paper ($20,000), and treasury bills ($50,000), which equals $120,000. Cash in banks is not considered a cash equivalent.

Assume Young Company Holds the Following Assets at Year-End and Classifies