Assume Bellini Company holds the following assets at year-end and classifies as cash equivalents everything allowed by professional standards.

What would be the total cash equivalents at year-end for Bellini Company?
A)$90,000
B)$115,000
C)$135,000
D)$160,000

Question

Assume Bellini Company holds the following assets at year-end and classifies as cash equivalents everything allowed by professional standards.

What would be the total cash equivalents at year-end for Bellini Company?
A)$90,000 
B)$115,000 
C)$135,000 
D)$160,000

Quizplus · Accepted Answer

Based on the assets shown in the table, the cash equivalents at year-end for Bellini Company would be:
- Treasury bills: $50,000
- Commercial paper: $70,000
- Total cash equivalents: $50,000 + $70,000 = $120,000
Therefore, the best choice is C, which is the closest option to $120,000. None of the other answer choices are as close.

Assume Bellini Company Holds the Following Assets at Year-End and Classifies