When reporting cash on the balance sheet, companies:
A)show each bank account separately.
B)combine cash with accounts receivable.
C)include any restricted amounts.
D)combine cash and cash equivalents.

Question

Quizplus · Accepted Answer

Companies report cash and cash equivalents together on the balance sheet because they are both highly liquid assets that can be quickly converted into a known amount of cash.

When Reporting Cash on the Balance Sheet, Companies