ACCT 201 Chapter 7 Practice Problem 2 Cash and Cash Equivalents Cryptocurrencies are digital currencies that use cryptography to ensure security of transactions and records. In the mid-2010s, cryptocurrencies such as Bitcoin, Ethereum, and Litecoin gained tremendous popularity, at least among a segment of the world's population. At the end of 2017, there were over 1,000 B cryptocurrencies with total value equivalent to over US$600 billion. However, none are (as yet) affiliated with any national currencies or central banks. Rising along with the popularity are also the values of cryptocurrencies. Expressed in terms of US dollars, Bitcoin's value increased more than 10-fold in 2017; Ethereum 100- fold; Litecoin 80-fold. Required Suppose a company uses some idle cash to purchase cryptocurrencies. Should the company report such cryptocurrencies on the company's balance sheet as a part of cash and cash equivalents? Why or why not? Study hint: If you are not familiar with cryptocurrencies such as Bitcoin, you might want to watch the short YouTube video linked below and skim over the PWC Publication: Cryptographic Assets and Related Transactions. YouTube Video (SciShow) Bitcoin: How Cryptocurrencies Work (9:25) Filename: PWC 2019 December Cryptographic Assets and Related Transactions.pdf Activ Go to