Peterson Company Has the Following Items at Year-End Peterson Should Report Cash and Cash Equivalents of
A)$30,000

question 31

Multiple Choice

Peterson Company has the following items at year-end: $\begin{array}{lr}\text { Cash in bank } & \$ 30,000 \\\text { Petty cash } & 500 \\\text { Short-term paper with maturity of } 2 \text { months } & 8,200 \\\text { Postdated checks } & 2,100\end{array}$ Peterson should report cash and cash equivalents of

• A)$30,000.
• B)$30,500.
• C)$38,700.
• D)$40,800.

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Definitions:

Opportunity Cost

The worth of the best option that was given up to make a choice.

Leisure

Free time when one is not working or occupied; time available for ease, relaxation, and activities one enjoys.

Substitution Effect

Changes in what consumers purchase, brought about by alterations in the relative costs of goods, persuading consumers to opt for alternatives over their usual choices.

Income Effect

The correlation between income changes in an economy or for individuals and their effect on the quantity of goods and services demanded.