Explain the difference between cash and cash equivalents.
What will be an ideal response?
Cash includes currency, coins, deposits in bank accounts, checking accounts, and savings accounts.. Cash equivalents are short-term investments that meet the two specific criteria of being readily convertible to a known cash amount and being sufficiently close to maturity so that the market value is not sensitive to changes in interest rates. Examples of short-term investments include certificates of deposits and government treasury bills.
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If Everly Company issues 1,000 shares of $5 par value common stock for $75,000, the account
A) Common Stock will be credited for $75,000. B) Paid-in Capital in excess of Par Value will be credited for $5,000. C) Paid-in Capital in excess of Par Value will be credited for $70,000. D) Cash will be debited for $70,000.
When comparing labor and corporate organizations, one can conclude that all of the following aspects are similar except:
A. The structure of the organizations' hierarchies. B. The organizations' democratic practices. C. The organizations' formalized procedures. D. The organizations' specialized functions.
In relation to the Takings Clause, public use has been held to be synonymous with public purpose
a. True b. False Indicate whether the statement is true or false
The effective annual rate increases with increasing compounding frequency
Indicate whether the statement is true or false