Business, 04.08.2020 21:01 kajjumiaialome

Indicate whether each of the following statements is true or false. a. A company has the following assets at the end of the year: cash on hand $40,000, cash refund due from customer $30,000, and checking account balance $22,000. Cash and cash equivalents is therefore $62,000.b. A company that has received NSF checks should report these checks as a current liability on the balance sheet. c. Restricted cash that is a current asset is reported as part of cash and cash equivalents. d. A company has cash in the bank of $50,000, petty cash of $400, and stock investments of $100,000. Total cash and cash equivalents is therefore $50,400.

Answers: 1

Show answers

Answers

Answer from: lisaboden1701

Indication of whether each of the following statements is true or false:

a. A company has the following assets at the end of the year: cash on hand $40,000, cash refund due from customer $30,000, and checking account balance $22,000. Cash and cash equivalents is therefore $62,000.

True

b. A company that has received NSF checks should report these checks as a current liability on the balance sheet.

False

c. Restricted cash that is a current asset is reported as part of cash and cash equivalents.

False

d. A company has cash in the bank of $50,000, petty cash of $400, and stock investments of $100,000. Total cash and cash equivalents is therefore $50,400.

True

Explanation:

a. Cash and cash equivalents do not include refund due from customers.

b. NSF checks mean that the checks were returned by the bank to the company marked "Not Sufficient Funds." These checks are to be returned to the customers. The customers' accounts will be debited to reverse the earlier recorded payment offsetting their accounts. They are, therefore, not to be recorded as liabilities.

c. Since restricted cash is not available for general and immediate use by the company, it is not part of the cash and cash equivalents. The cash and cash equivalents deal with cash and near cash items that can easily be converted into cash and used in settlement of financial obligations.

d. This is while only marketable securities (bonds, shares, etc) are included in cash and cash equivalents, because most of them have a duration of less than 3 months. Stock investments, without any qualification, do not qualify to be classified as cash and cash equivalents, unless they are held as marketable securities.

Answer from: Quest

the page presents four different kinds of threats that volcanoes pose and what to do before, during, and after an eruption.

Answer from: Quest

Because she is a liberal

Other questions on the subject: Business

Business, 21.06.2019 16:10, cgarnett5408

Aldrich and co. sold goods to donovan on credit. the amount owed grew steadily, and finally aldrich refused to sell any more to donovan unless donovan signed a promissory note for the amount due. donovan did not want to but signed the note because he had no money and needed more goods. when aldrich brought an action to enforce the note, donovan claimed that the note was not binding because it had been obtained by economic duress. was he correct? [aldrich & co. v. donovan, 778 p.2d 397 (mont.)]

Answers: 1

continue

Business, 22.06.2019 17:00, Ididntwanttomakethis

Aaron corporation, which has only one product, has provided the following data concerning its most recent month of operations: selling price $ 102 units in beginning inventory 0 units produced 4,900 units sold 4,260 units in ending inventory 640 variable costs per unit: direct materials $ 20 direct labor $ 41 variable manufacturing overhead $ 5 variable selling and administrative expense $ 4 fixed costs: fixed manufacturing overhead $ 64,200 fixed selling and administrative expense $ 2,900 the total contribution margin for the month under variable costing is:

Answers: 2

continue

Business, 22.06.2019 19:30, sky81428

Which of the following occupations relate to a skill category of words and literacy

Answers: 1

continue

Business, 22.06.2019 20:30, tilly40oooo

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company. the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy. the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress. the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.

Answers: 3

continue

You know the right answer?

Indicate whether each of the following statements is true or false. a. A company has the following a...