Question

For financial reporting purposes, cash generally includes currency and other items that are payable on demand, such as checks, money orders, bank drafts, and certain savings accounts.
True or False?

Answer 1

Answer:

The statement is: True.

Explanation:

For accounting purposes, cash is defined as every monetary instrument that can easily be converted into actual cash. Those instruments can be coins, currency, checks, money orders, bank drafts, or Certificates of Deposit (CD), to mention a few. In its most basic essence, cash is the default medium of exchange for goods and services to be traded.