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

Cash equivalents are highly liquid investments with a maturity of three months or less at the time of purchase. Based on the assets listed in the image, the following items can be considered cash equivalents:
- Treasury bills: $50,000 
- Money market funds: $85,000 
Therefore, the total cash equivalents at year-end for Bellini Company would be $135,000 (option C).

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