Indicate whether each of the following statements is true or false. 1. 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. select an option 2. A company that has received NSF checks should report these checks as a current liability on the balance sheet. select an option 3. Restricted cash that is a current asset is reported as part of cash and cash equivalents. select an option 4. 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.

Question

Evan Santos

Business

20 March, 04:22

Indicate whether each of the following statements is true or false. 1. 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. select an option 2. A company that has received NSF checks should report these checks as a current liability on the balance sheet. select an option 3. Restricted cash that is a current asset is reported as part of cash and cash equivalents. select an option 4. 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.

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Adyson Chaney · Answer 1

The following statements stated the true and false condition

1. This statement is true as the cash and cash equivalent includes the cash on end end year balance + checking account balance. It does not include the refund amount due from customer.

2. This statement is false as the NSF checks are plus back to the account receivable

3. This statement is false as the restricted cash is shown separately as it is met for some specific purpose

4. This statement is true. As under the investment, the stock investment is recorded