Which of the following accounts contains the actual money that can be spent by a firm?
A)Accounts Receivable
B)Notes Payable
C)Net Worth
D)Inventories
E)Cash and Equivalents

Question

Quizplus · Accepted Answer

Cash and Equivalents is the only account that contains actual money that can be spent by a firm. Accounts Receivable represent amounts owed by customers, Notes Payable represent borrowed money, Net Worth represents the residual interest in the assets of a company after deducting liabilities, and Inventories represent goods that are held for future sales.

Which of the Following Accounts Contains the Actual Money That