The following accounts are listed in a company's general ledger:
REQUIRED:
1. Which items are cash equivalents?
2. Explain where items that are not cash equivalents should be classified on the balance sheet.
3. What are the amount and the direction of change in cash and cash equivalents for 2015? Is the company as liquid at the end of 2015 as it was at the end of 2014? Explain your answer.

Question

The following accounts are listed in a company's general ledger:
   REQUIRED:
1. Which items are cash equivalents?
2. Explain where items that are not cash equivalents should be classified on the balance sheet.
3. What are the amount and the direction of change in cash and cash equivalents for 2015? Is the company as liquid at the end of 2015 as it was at the end of 2014? Explain your answer.

Quizplus · Accepted Answer

The Answer of The following accounts are listed in a company's general ledger:
   REQUIRED:
1. Which items are cash equivalents?
2. Explain where items that are not cash equivalents should be classified on the balance sheet.
3. What are the amount and the direction of change in cash and cash equivalents for 2015? Is the company as liquid at the end of 2015 as it was at the end of 2014? Explain your answer.

The Following Accounts Are Listed in a Company's General Ledger