Which of the Following Would Not Be Included in the Definition

question 26

Multiple Choice

Which of the following would not be included in the definition of "cash" on the cash flow statement?

• A)Cash on hand.
• B)Cash in foreign bank accounts.
• C)Bonds owned by the company.
• D)Short-term guaranteed investment certificates owned by the company.

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Definitions:

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Periodic Inventory System

An accounting method where inventory values and cost of goods sold are determined at the end of an accounting period.

Merchandise Inventory

refers to the goods available for sale to customers in the retail and wholesale industries.

Cost of Merchandise Sold

The total expense incurred by a business to sell goods over a period, including the cost of acquiring or manufacturing those goods.