Question

Kaniper Company has the following items at year-end:Cash in bank: $35,000Petty cash: $500Short-term paper with maturity of 2 month: $8,200Postdated checks: $2,100Kaniper should report cash and cash equivalents of:a. $35,000.b. $35,500.c. $43,700.d. $45,800.

Answer 1

Answer:

$43,700

Explanation:

Cash equivalents are short-term assets that are readily and easily convertible into cash. Being highly liquid, they are typically mature in a maximum of three months.

Petty cash for Kaniper Company

= $ 35,000 + $500 + $8,200

= $43,700