
(a)
Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily converted into other types of assets, it is reported as current assets in the assets section as the most liquid asset.
Cash and cash equivalents: Cash is the money readily available in the form of currency. Cash equivalents are the near-cash items, which are readily convertible into cash. Cash equivalents have a maturity period of three months, or less than 3 months. Cash equivalents are reported along with cash in the assets section of the
The balance of ‘Cash and cash equivalents’ to be reported on the balance sheet of Company W
(b)
To indicate: The accounts and statements where the items which are not included as ‘Cash and Cash equivalents’ in part (a) should be reported

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Chapter 7 Solutions
Financial Accounting, 10e WileyPLUS Registration Card + Loose-leaf Print Companion
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