Which of the following sales would typically be reported as a cash sale?

A) Sale in exchange for office supplies received.

B) Sale in exchange for equipment received.

C) Sale on account.

D) Sale with credit card.

Answer: Sale with credit card.

Common examples of cash equivalents include all of the following except:

A) Money market funds.

B) Treasury bills.

C) Certificates of deposit.

D) Accounts receivable.

Answer: Accounts receivable.

Cash equivalents refer to:

A) Short-term investments that have a maturity date no longer than three months from the date of purchase.

B) Amounts receivable from customers that have a very high probability of collection.

C) Short-term investments that have increased in value since the date of purchase, and therefore have generated additional cash for the company.

D) The total amount of cash a company would have if all assets were sold.

Answer: Short-term investments that have a maturity date no longer than three months from the date of purchase.

The term commonly used to refer to short-term investments that have a maturity date no longer than three months from the date of purchase is:

A) Accounts receivable.

B) Cash equivalents.

C) Accounts payable.

D) Short-term investments.

Answer: Cash equivalents.

The balance of cash reported in the balance sheet would include which of the following?

A) Balance of savings account.

B) Credit card sales.

C) Currency.

D) All of the other answers would be reported in the balance of cash

Answer: All of the other answers would be reported in the balance of cash

Cash may not include:

A) Foreign currency.

B) Money orders.

C) Accounts receivable.

D) Undeposited customer checks.

Answer: Accounts receivable.

Which of the following is considered cash for financial reporting purposes?

A) Accounts receivable.

B) Investments with maturity dates greater than three months.

C) Checks received from customers.

D) Accounts payable.

Answer: Checks received from customers.