In a Statement of Cash Flows, the Term Cash Includes

question 58

Multiple Choice

In a statement of cash flows, the term cash includes:

• A) Only money on deposit in bank accounts.
• B) Only bank accounts and cash on hand.
• C) Bank accounts, cash on hand, and cash equivalents.
• D) Bank accounts, cash on hand, cash equivalents, and equity securities classified as current assets.

Understand the principles of internal control over cash receipts and disbursements.

Recognize the role and importance of a voucher system in controlling cash disbursements.

Comprehend the purpose and operation of petty cash.

Identify the parties involved in a check and understand the check's role in banking transactions.

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Definitions:

Copyright

A legal right granted to the creator of an original work, protecting it from unauthorized use.

Intangible Assets

Non-physical assets with economic value, such as patents, trademarks, copyrights, and goodwill, that are expected to provide benefits to a business over multiple periods.

Journalize

The act of recording financial transactions into the journal entries of an accounting system.

Upgrade

The process of enhancing or improving an existing system, software, or product to boost performance or add features.