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Turblad Company has several items in its safe at December 31, Year 1. Which of these items would not be included in Turblad's cash & cash equivalents in its Year 1 balance sheet?
A treasury bill would be considered an investment, not cash or a cash equivalent.
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Globe Company began April of Year 3 with a cash balance of $68,000 in its operating account. During the month of April, Globe issued new checks totaling $14,000 to vendors. Of these newly issued checks, $9,000 cleared the bank in April. Globe also transferred $8,000 to its payroll account to pay employees during the month. Globe received $22,000 in checks from its customers in April and deposited $18,000 of those checks during the month. Also during April $6,000 of checks issued during March of Year 3 cleared the bank. What is Globe's cash balance in its operating account at the end of April, Year 3?
Globe's adjusted cash balance is calculated by taking the beginning balance of $68K - $14K for newly issued checks - $8K transferred to payroll + $18K deposited checks. It is irrelevant when Globe's issued checks actually cleared the bank.
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ABC Company is reconciling its cash balance at December 31, Year 1. Which of the following items would require an adjusting entry to the cash account by ABC Company?
ABC has cancelled its check with the bank, but this adjustment is not yet reflected in its ledger. Therefore, ABC would need to make an adjustment to its ledger to increase its cash balance.
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Of the following, which would not be included in the cash and cash equivalent account?
Stock investments classify as their own asset class and are not a cash account.
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