Brighton Inc. reported the following amounts: Cash in bank-chequing account of $37,000, Cash on hand of $1,000, Postdated cheques received totalling $3,500, and certificates of deposit totalling $248,000. How much should be reported as cash in the statement of financial position?

Question

Quizplus · Accepted Answer

The amount reported as cash in the statement of financial position should include cash in bank-chequing account ($37,000) and cash on hand ($1,000), totaling $38,000. Postdated cheques and certificates of deposit are not included in the cash balance.