The company has $8,000 in its checking account,$16,000 in its savings account,$800 in petty cash,$20,000 in one-year Treasury bills,and $12,000 in a money market fund.What amount should be reported as cash and cash equivalents on the balance sheet?
A)$24,000
B)$24,800
C)$36,800
D)$56,800

Question

Quizplus · Accepted Answer

Cash,as reported on the balance sheet,includes cash deposited with banks,petty cash on hand,and cash equivalents.Cash equivalents are short-term,highly liquid investments purchased within three months of maturity.Cash equivalents include money market funds,government Treasury bills,and other highly liquid investments.
Cash and cash equivalents = $8,000 + $16,000 + $800 + $12,000

The Company Has $8,000 in Its Checking Account,$16,000 in Its