Which of the following statements is incorrect? Cash that is restricted and not available for use within one year from the end of reporting period should be included in noncurrent assets O Cash fund that is being held specifically for the retirement of long-term debts not maturing currently should be excluded from current assets and shown as a noncurrent investment. O Investments that can be liquidated at once and with little risk of loss of principal may be classified as cash equivalents and included the caption "Cash and cash equivaents" Cash and cash equivalents is always presented as the first line item in the statement of financial position Clear my choice
Which of the following statements is incorrect? Cash that is restricted and not available for use within one year from the end of reporting period should be included in noncurrent assets O Cash fund that is being held specifically for the retirement of long-term debts not maturing currently should be excluded from current assets and shown as a noncurrent investment. O Investments that can be liquidated at once and with little risk of loss of principal may be classified as cash equivalents and included the caption "Cash and cash equivaents" Cash and cash equivalents is always presented as the first line item in the statement of financial position Clear my choice
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Which of the following statements is incorrect?
O Cash that is restricted and not available for use within one year from the end of
reporting period should be included in noncurrent assets
O Cash fund that is being held specifically for the retirement of long-term debts not
maturing currently should be excluded from current assets and shown as a
noncurrent investment.
O Investments that can be liquidated at once and with little risk of loss of principal
may be classified as cash equivalents and included
the caption "Cash and cash
equivaents"
Cash and cash equivalents is always presented as the first line item in the
statement of financial position
Clear my choce
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