2. In what accounts should the following items be classified? (a) Coins and curr

Question

2. In what accounts should the following items be classified? (a) Coins and currency (b) US. Treasury (government) bonds. (c) Certificate of deposit (matures in 5 months). (d) Cash in a bank that is in receivership. (e) NSF check (returned with bank statement). (0 Deposit in foreign bank (exchangeability limited) (g) Postdated checks. (h) Cash to be used for retirement of long-term bonds (G) Deposits in transit. G) 100 shares of HP stock (intention is to sell in one year or less) (k) Savings and checking accounts (1) Petty cash. (m) Stamps (n) Travel advances ble on ws os leos irses

Explanation / Answer

(a) Coins and currency. - Cash

(b) U.S. Treasury (government) bonds. -cash equivalent

(c) Certificate of deposit. -Cash

(d) Cash in a bank that is in receivership.-Non current asset

(e) NSF check (returned with bank statement). - Cash

(f) Deposit in foreign bank (exchangeability limited). - Current assets

(g) Postdated checks.- Receivables

(h) Cash to be used for retirement of long-term bonds.- Non current assets

(i) Deposits in transit.- Non current assets

(j) 100 shares of Dell stock (intention is to sell in one year or less). -Temporary investment

(k) Savings and checking accounts. - Cash

(l) Petty cash. - Cash

(m) Stamps. - Prepaid expenses

(n) Travel advances.- Receivables

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