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21.Which of the following is not considered cash for financial reporting purposes?
a.Petty cash funds and change funds
b.Money orders, certified checks, and personal checks
c.Coin, currency, and available funds
d.Postdated checks and I.O.U. 's

22.Which of the following is considered cash?
a.Certificates of deposit (CDs)
b.Money market checking accounts
c.Money market savings certificates
d.Postdated checks

23.Travel advances should be reported as because they represent the equivalent of money.
d.none of these.

24.Which of the following items should not be included in the Cash caption on the balance sheet?
a.Coins and currency in the cash register
b.Checks from other parties presently in the cash register
c.Amounts on deposit in checking account at the bank
d.Postage stamps on hand

25A cash equivalent is a short-term, highly liquid investment that is readily convertible into known amounts of cash and acceptable as a means to pay current liabilities.
b.has a current market value that is greater than its original cost
c.bears an interest rate that is at least equal to the prime rate of interest at the date of liquidation. so near its maturity that it presents insignificant risk of changes in interest rates.

26.Bank overdrafts, if material, should be
a.reported as a deduction from the current asset section.
b.reported as a deduction from cash.
c.netted against cash and a net cash amount reported.
d.reported as a current liability.

27.Deposits held as compensating balances
a.usually do not earn interest.
b.if legally restricted and held against short-term credit may be included as cash.
c.if legally restricted and held against long-term credit may be included among current assets.
d.none of these.

28.The category "trade receivables" includes
a.advances to officers and employees.
b.income tax refunds receivable. against insurance companies for

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