As of December 31, 2011, Chippewa Company has $26,440 cash in its checking account, as well as several other items listed below: What amount should be shown in Chippewa's December 31, 2011, balance sheet as "Cash and cash equivalents"?

Question

Quizplus · Accepted Answer

Cash and cash equivalents typically include cash in checking accounts, savings accounts, and short-term investments that are easily convertible to cash. The problem implies that there are additional items beyond the $26,440 in the checking account that qualify as cash equivalents, leading to the total of $139,640.

As of December 31, 2011, Chippewa Company Has $26,440 Cash