Lori's Company Has the Following Items: Cash in a Checking

question 20

Multiple Choice

Lori's Company has the following items: cash in a checking account, $4000; cash in a savings account, $7000; high-grade government securities due in one month (purchased last month) , $3556; accounts receivable, $3,000; cash in a compensating balance agreement, $3,200. How much should appear as Cash and Cash Equivalents on the balance sheet?

• A)$7000
• B)$14,556
• C)$17,556
• D)$17,856

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Definitions:

Negative

Referring to a situation or number less than zero, often indicating a deficit or a decrease in a quantitative measure.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

Supplier

A party that provides goods or services to another entity, typically part of a supply chain.

Revenue

The entire financial income obtained from transactions involving the sale of products or the provision of services central to an organization's main operations.