Which Statement Is Not Correct

question 4

Multiple Choice

Which statement is not correct?

• A)Cash is an idle asset for a business.
• B)Bank overdrafts cannot be considered cash equivalents.
• C)Cash equivalents are readily convertible to cash.
• D)Cash and cash equivalents is reconciled in the cash flow statement.

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Definitions:

Appetizers

Small dishes served before the main course of a meal to stimulate the appetite.

Dessert

A sweet course typically served at the end of a meal.

Opportunity Cost

The cost of choosing one option over another, representing the value of the foregone alternative that wasn't chosen.

Variable Cost

Costs that vary directly with the level of production or service delivery, such as materials and labor costs.