Which of the Following Would Not Be Reported on the Balance

question 152

Multiple Choice

Which of the following would not be reported on the balance sheet as a cash equivalent?

• A) Money market fund
• B) Sixty-day certificate of deposit
• C) Six-month Treasury bill
• D) Money market savings certificate

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Definitions:

Debits

These are entries on the left side of accounting records, used to increase asset or expense accounts or decrease liabilities, equity, or revenue accounts.

Credits

Accounting entries that increase liabilities or equity or decrease an asset or expense.

Common Shares

Shares of stock, which signify part ownership in a corporation, granting the holder the right to vote on corporate matters and to receive a portion of the company’s earnings via dividends.

Revenues

The cumulative income arising from transactions involving goods or services integral to a firm's primary business.