Acct 3367 accounting - Study guides, Class notes & Summaries

ACCT 3367: Accounting Final Exam What are the most liquid assets? - correct answercash ex: coin, currency, deposits at the bank, money orders, certified checks, cashier's checks, bank drafts, & savings accounts What are cash equivalents? - correct answer- short-term, highly liquid investments ex: treasury bills, commercial paper, money market funds What is restricted cash? - correct answerCash set aside for a particular purpose; material in amount ex: cash restricted for; (1...

ACCT 3367 Accounting Exam 1 deduction from sales in income statement - correct answerIf a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be reported as the amount of the discount is not material - correct answerAssuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future, failure to follow this practice usually does not make the balance she...