For Accounting Purposes,cash Includes Which of the Following

question 126

Multiple Choice

For accounting purposes,cash includes which of the following?

• A)IOU's received from employees.
• B)a post-dated cheque received from a customer.
• C)balances on deposit in banks.
• D)a note received from a customer in settlement of an overdue account receivable.

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Definitions:

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the company's profits and a right to vote on major company decisions.

Acquisition

The process by which one company purchases most or all of another company's shares or assets, gaining control over the acquired company.

Consolidated Retained Earnings

The cumulative amount of profits kept by a company after dividends are paid, as reported in consolidated financial statements that merge the accounts of parent and subsidiary entities.

Par Value

The face value of a bond or stock as stated in the corporate charter or on the certificate.