The meaning of cash equivalents.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 9, Problem 9.1Q

To determine

The meaning of cash equivalents.

Expert Solution & Answer

Answer to Problem 9.1Q

Cash equivalents are the negotiable instruments that can be converted into cash within an operating cycle of the company.

Explanation of Solution

Cash:

Cash is monetary value readily available for spending for the purpose of exchange of goods and services. Cash can be in the form of currency notes, amount deposited in the bank account, bank cheques.

Cash Equivalents:

Cash equivalent are the negotiable instruments that can be converted into cash within a short period of time
Examples of cash equivalents are bills receivable, commercial paper, certificate of deposits.
Generally cash equivalents are investments made for the purpose of earning interest out of the unused cash.
Use of cash equivalents indicates that a company is financially sound.

Conclusion

Cash equivalents are the negotiable instruments that are substitutes for cash.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell Company are reviewing the profitability of the company’s four products and the potential effects of several proposals for varying the product mix. The following is an excerpt from the income statement and other data. Total Product P Product Q Product R Product S Sales $62,600 $10,000 $18,000 $12,600 $22,000 Cost of goods sold (44,274) (4,750) (7,056) (13,968) (18,500) Gross profit $18,326 $5,250 $10,944 $(1,368) $3,500 Operating expenses (12,004) (1,990) (2,968) (2,826) (4,220) Income before taxes 6,322 $3,260 $7,976 $(4,194) $(720) Units sold 1,000 1,200 1,800 2,000 Sales price per unit $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold 2.50 3.00 6.50 6.00 Variable operating expenses 1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in each…

Analyzing one company's make or buy and special order proposals OneCo is a retail organization in the Northeast that sells upscale clothing. Each year, store managers (in consultation with their supervisors) establish financial goals; a monthly reporting system captures actual performance. OneCo Inc. produces a single product. Cost per unit, based on the manufacture and sale of 10,000 units per month at full capacity, is shown below. Product costs Direct materials $4.00 Direct labor 1.30 Variable overhead 2.50 Fixed overhead 3.40 Sales commission 0.90 $12.10 The $0.90 sales commission is paid for every unit sold through regular channels. Market demand is such that OneCo is operating at full capacity, and the firm has found it can sell all it can produce at the market price of $16.50. Currently, OneCo is considering two separate proposals: · Gatsby, Inc. has offered to buy 1,000 units at $14.35 each. Sales commission would be $0.35 on this special order. ·…

MYS App Ch 1 M Ques M X Chat Use ta gaut Soluta acco a webs a wear a acco calcuTelesa Requ /ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect ework i ces Saved [The following information applies to the questions displayed below.] The first production department in a process manufacturing system reports the following unit data. Beginning work in process inventory Units started and completed 35,200 units 52,800 units Units completed and transferred out Ending work in process inventory 88,000 units 17,900 units Help Save & Exercise 16-4 (Algo) Weighted average: Computing equivalent units LO P1 Prepare the production department's equivalent units of production for direct materials under each of the following three separate assumptions using the weighted average method for process costing. Equivalent Units of Production (EUP)-Weighted Average Method 1. All direct materials are added to products when…

Answer 2

Question

Chapter 9, Problem 9.1Q

To determine

The meaning of cash equivalents.

Expert Solution & Answer

Answer to Problem 9.1Q

Cash equivalents are the negotiable instruments that can be converted into cash within an operating cycle of the company.

Explanation of Solution

Cash:

Cash is monetary value readily available for spending for the purpose of exchange of goods and services. Cash can be in the form of currency notes, amount deposited in the bank account, bank cheques.

Cash Equivalents:

Cash equivalent are the negotiable instruments that can be converted into cash within a short period of time
Examples of cash equivalents are bills receivable, commercial paper, certificate of deposits.
Generally cash equivalents are investments made for the purpose of earning interest out of the unused cash.
Use of cash equivalents indicates that a company is financially sound.

Conclusion

Cash equivalents are the negotiable instruments that are substitutes for cash.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 9, Problem 9.1Q

To determine

The meaning of cash equivalents.

Expert Solution & Answer

Answer to Problem 9.1Q

Cash equivalents are the negotiable instruments that can be converted into cash within an operating cycle of the company.

Explanation of Solution

Cash:

Cash is monetary value readily available for spending for the purpose of exchange of goods and services. Cash can be in the form of currency notes, amount deposited in the bank account, bank cheques.

Cash Equivalents:

Cash equivalent are the negotiable instruments that can be converted into cash within a short period of time
Examples of cash equivalents are bills receivable, commercial paper, certificate of deposits.
Generally cash equivalents are investments made for the purpose of earning interest out of the unused cash.
Use of cash equivalents indicates that a company is financially sound.

Conclusion

Cash equivalents are the negotiable instruments that are substitutes for cash.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 9.1Q

To determine

The meaning of cash equivalents.

Expert Solution & Answer

Answer to Problem 9.1Q

Cash equivalents are the negotiable instruments that can be converted into cash within an operating cycle of the company.

Explanation of Solution

Cash:

Cash is monetary value readily available for spending for the purpose of exchange of goods and services. Cash can be in the form of currency notes, amount deposited in the bank account, bank cheques.

Cash Equivalents:

Cash equivalent are the negotiable instruments that can be converted into cash within a short period of time
Examples of cash equivalents are bills receivable, commercial paper, certificate of deposits.
Generally cash equivalents are investments made for the purpose of earning interest out of the unused cash.
Use of cash equivalents indicates that a company is financially sound.

Conclusion

Cash equivalents are the negotiable instruments that are substitutes for cash.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 9.1Q

To determine

The meaning of cash equivalents.

Expert Solution & Answer

Answer to Problem 9.1Q

Cash equivalents are the negotiable instruments that can be converted into cash within an operating cycle of the company.

Explanation of Solution

Cash:

Cash is monetary value readily available for spending for the purpose of exchange of goods and services. Cash can be in the form of currency notes, amount deposited in the bank account, bank cheques.

Cash Equivalents:

Cash equivalent are the negotiable instruments that can be converted into cash within a short period of time
Examples of cash equivalents are bills receivable, commercial paper, certificate of deposits.
Generally cash equivalents are investments made for the purpose of earning interest out of the unused cash.
Use of cash equivalents indicates that a company is financially sound.

Conclusion

Cash equivalents are the negotiable instruments that are substitutes for cash.

Answer 6

Chapter 9, Problem 9.1Q

To determine

The meaning of cash equivalents.

Expert Solution & Answer

Answer to Problem 9.1Q

Cash equivalents are the negotiable instruments that can be converted into cash within an operating cycle of the company.

Explanation of Solution

Cash:

Cash is monetary value readily available for spending for the purpose of exchange of goods and services. Cash can be in the form of currency notes, amount deposited in the bank account, bank cheques.

Cash Equivalents:

Cash equivalent are the negotiable instruments that can be converted into cash within a short period of time
Examples of cash equivalents are bills receivable, commercial paper, certificate of deposits.
Generally cash equivalents are investments made for the purpose of earning interest out of the unused cash.
Use of cash equivalents indicates that a company is financially sound.

Conclusion

Cash equivalents are the negotiable instruments that are substitutes for cash.

Answer 7

Chapter 9, Problem 9.1Q

To determine

The meaning of cash equivalents.

Answer 8

Expert Solution & Answer

Answer to Problem 9.1Q

Cash equivalents are the negotiable instruments that can be converted into cash within an operating cycle of the company.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Cash:

Cash is monetary value readily available for spending for the purpose of exchange of goods and services. Cash can be in the form of currency notes, amount deposited in the bank account, bank cheques.

Cash Equivalents:

Cash equivalent are the negotiable instruments that can be converted into cash within a short period of time
Examples of cash equivalents are bills receivable, commercial paper, certificate of deposits.
Generally cash equivalents are investments made for the purpose of earning interest out of the unused cash.
Use of cash equivalents indicates that a company is financially sound.

Answer 12

Conclusion

Cash equivalents are the negotiable instruments that are substitutes for cash.

Answer 13

Ch. 9 - Prob. 9.1Q Ch. 9 - Do companies always classify cash as a current...Ch. 9 - Prob. 9.3Q Ch. 9 - Do accountants typically measure accounts...Ch. 9 - Under the allowance method, will the actual...Ch. 9 - How does an entity record a subsequent recovery of...Ch. 9 - Does the aging of accounts receivable method of...Ch. 9 - What is the difference between pledging accounts...Ch. 9 - How do companies account for receivables that are...Ch. 9 - Is the face value of a note receivable exchanged...

The meaning of cash equivalents.

Concept explainers

The meaning of cash equivalents.

Answer to Problem 9.1Q

Explanation of Solution

Want to see more full solutions like this?

Chapter 9 Solutions