Given the Following Items,what Amount Should Be Reported on the Balance

question 11

Essay

Given the following items,what amount should be reported on the balance sheet as Cash and cash equivalents?

$$\begin{array} {| l | r | } \hline\text { Cashier's check } & \$ 5,000 \\\hline \text { Certificate of deposit (due in 9 months) } & 12,000 \\\hline \text { Checking account } & 5,500 \\\hline \text { Coins and currency on hand } & 1,225 \\\hline \text { IOU from employee } & 565 \\\hline \text { Money market account } & 15,000 \\\hline \text { Postage stamps } & 375 \\\hline \text { Savings account } & 22,000 \\\hline \text { Undeposited customer checks } & 1,750 \\\hline\end{array}$$

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Definitions:

Income

Earnings received by an individual or entity, usually in the form of wages, salaries, or investments.

Interest Rate

The percentage of a loan charged to the borrower as interest, usually shown as an annual rate of the outstanding loan amount.

Utility Function

A mathematical representation in economics of a consumer's preference ordering over a set of goods and services.

Consumption

The process by which goods and services are used up or consumed by individuals or groups.