When reporting cash on the balance sheet,companies:
A)show each bank account separately.
B)combine cash with accounts receivable.
C)combine cash with long-term investments.
D)combine cash and cash equivalents.

Question

Quizplus · Accepted Answer

Combining cash and cash equivalents is the best choice for reporting cash on the balance sheet because it is necessary to present the total cash and cash equivalents available to the company. Combining them in one line item demonstrates the total amount of immediately available cash resources.

When Reporting Cash on the Balance Sheet,companies