Lori's Company has the following items: cash in a checking account, $4000; cash in a savings account, $7000; high-grade government securities due in one month (purchased last month), $3556; accounts receivable, $3,000; cash in a compensating balance agreement, $3,200. How much should appear as Cash and Cash Equivalents on the balance sheet?
A)$7000
B)$14,556
C)$17,556
D)$17,856

Question

Quizplus · Accepted Answer

Cash and Cash Equivalents include cash in checking and savings accounts, and high-grade government securities due in one month. Therefore, $4000 (checking) + $7000 (savings) + $3556 (securities) = $14,556.

Lori's Company Has the Following Items: Cash in a Checking