Grisson Enterprises provides the following information: $$\begin{array} { | l | r | }
\hline \text { Currency and coin } & 500 \
\hline \text { First Bank - Checking } & 5,000 \
\hline \text { Second Bank - Checking } & ( 700 ) \
\hline \text { First Bank - Savings* } & 30,000 \
\hline \text { 2-month CD } & 13,000 \
\hline 5 \text { month CD } & 11,000 \
\hline
\end{array}$$ * Restricted fund for bond retirement
Following U.S. GAAP, what is the dollar amount of Cash and Cash Equivalents reported on Grisson's balance sheet?
A) $29,500
B) $28,800
C) $18,500
D) $17,800

Question

Grisson Enterprises provides the following information: $$\begin{array} { | l | r | } 
\hline \text { Currency and coin } & 500 \
\hline \text { First Bank - Checking } & 5,000 \
\hline \text { Second Bank - Checking } & ( 700 ) \
\hline \text { First Bank - Savings* } & 30,000 \
\hline \text { 2-month CD } & 13,000 \
\hline 5 \text { month CD } & 11,000 \
\hline
\end{array}$$ * Restricted fund for bond retirement
Following U.S. GAAP, what is the dollar amount of Cash and Cash Equivalents reported on Grisson's balance sheet?
A) $29,500
B) $28,800
C) $18,500
D) $17,800

Quizplus · Accepted Answer

Cash and cash equivalents include currency, checking accounts, and short-term investments with maturities of three months or less. The restricted savings account and CDs with maturities over three months are excluded. Thus, the total is $500 (currency) + $5,000 (First Bank - Checking) - $700 (Second Bank - Checking) + $13,000 (2-month CD) = $18,500.

Grisson Enterprises Provides the Following Information * Restricted Fund for Bond Retirement Following U

Grisson Enterprises Provides the Following Information * Restricted Fund for Bond Retirement
Following U