Question: True or false explain false Checks are considered a form or manner of cash. cash is the most liquid current asset. Staked checks are more
True or false explain false
- Checks are considered a form or manner of cash.
- cash is the most liquid current asset.
- Staked checks are more of a short-term investment, than cash.
- If you buy postage stamps in advance, these can be considered a current asset.
- One of the uses of Petty Cash is to cover extraordinary costs and expenses from the accounting point of view.
- Money Markets Funds are classified as Cash.
- Cash equivalents include highly liquid investments, due to their ease of converting into cash.
- Treasury Bills are long-term investments.
- Restricted Cash can be used to attend and cover the payroll.
- Bank overdrafts are always classified as short-term or current debt.
- The compensatory balances are considered as accounts receivable, resulting from bank transactions
- Receivables are not considered as financial assets.
- All accounts receivable are considered current assets.
- Notes Receivables are considered current assets.
- Receivables that do not serve, can be used as collateral in bank loans.
- Mercantile Receivables come from the normal operations of a business.
- Non-Trade Receivables include claims to Insurance Companies for non-recurring and unforeseen events.
- The Provision for accounts receivable (Allowances for Bad Debts) behaves increasing due to the debit.
- To remove an account receivable from the accounting books, it is sufficient that the customer cannot justifiably pay or has died.
- 2/10, n / 30 is a cash discount offer for accounts receivable, to speed up collections as a cash management strategy.
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