Assuming Charlton Company has the following December 31 year end account balances: $$\begin{array} {| l | r |}
\hline
\text { Chequing } & \$ 2,450 \
\hline \text { Savings } & 5,650 \
\hline \text { Petty cash } & 250 \
\hline
\end{array}$$ Cash and Cash equivalents would be reported on the Balance Sheet as:
A)$2,450.
B)$5,650.
C)$250.
D)$8,350.

Question

Assuming Charlton Company has the following December 31 year end account balances: $$\begin{array} {| l | r |} 
\hline
\text { Chequing } & \$ 2,450 \
\hline \text { Savings } & 5,650 \
\hline \text { Petty cash } & 250 \
\hline
\end{array}$$ Cash and Cash equivalents would be reported on the Balance Sheet as:
A)$2,450.
B)$5,650.
C)$250.
D)$8,350.

Quizplus · Accepted Answer

Cash and cash equivalents include all liquid cash on hand and in banks, including chequing and savings accounts, as well as petty cash. Therefore, the total is $2,450 (Chequing) + $5,650 (Savings) + $250 (Petty Cash) = $8,350.

Assuming Charlton Company Has the Following December 31 Year End