If a Company Has Combined Cash Equivalents with Cash, It

question 20

True/False

If a company has combined cash equivalents with cash, it must disclose the components of the cash equivalents, with a reconciliation of the amounts reported on the statement of cash flows with those reported on the statement of financial position.

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Definitions:

Consumption

The consumption of products and services by families, an essential element in measuring a nation's Gross Domestic Product (GDP).

Savings

The portion of disposable income not spent on consumption of goods and services, often placed in a deposit account.

Disposable Income

Funds apportioned to households for saving and spending after the settlement of income taxes.

Consumption

Domestic consumption of goods and services by households.