Question

The following items appeared on the year-end trial balance of Consolidated Freight Corporation: cash in a checking account, U.S. Treasury bills that mature in six months, undeposited customer checks, cash in a savings account, and currency and coins. Which of these items would be included in the company’s balance sheet as cash and cash equivalents?
Cash in a checking account
U.S. Treasury bills that mature in six months
Undeposited customer checks
Cash in a savings account
Currency and coins

Answer 1

The correct option is A, D, and E. The following Items should be treated as cash and cash equivalents like cash in equivalents, undeposited customers' cheques if they are not postdated, cash in a savings account, and currency and coins, while U.S Treasury bills are also treated as cash and cash equivalents if they are mature less than 90 days.

What are Cash Equivalents?

Cash equivalents are the aggregate value of cash on hand that includes items that are similar to cash; cash and cash equivalents must be current assets.

Thus, expect the U.S Treasury bills that mature in six months and we assume undeposited customers' cheques are not posted-dated then all of the above items are cash and cash equivalents.

Learn more about Cash Equivalents here:

https://brainly.com/question/15359741

#SPJ1