Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Types of Receivables

Financial Accounting

7. Receivables and Investments

Types of Receivables

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Multiple Choice

Which of the following items is included in cash on a company's balance sheet?

IOUs from employees

Undeposited checks received from customers

Bank certificates of deposit with maturities over one year

Postdated checks

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Verified step by step guidance

Understand the concept of 'cash' in financial accounting: Cash on a company's balance sheet includes items that are readily available for use in transactions or can be quickly converted into cash. It excludes items that are not immediately accessible or have restrictions.

Evaluate each option provided in the problem: Determine whether each item meets the criteria for being classified as cash on the balance sheet.

Analyze 'IOUs from employees': IOUs are promises to pay and are not considered cash because they are not immediately available for use.

Analyze 'Undeposited checks received from customers': These checks are considered cash equivalents because they represent funds that are readily available once deposited.

Analyze 'Bank certificates of deposit with maturities over one year' and 'Postdated checks': Certificates of deposit with long maturities are not considered cash because they are not liquid, and postdated checks are not cash because they cannot be cashed until the specified date.