Answer:
false
Explanation:
Sunk cost is cost that has already been incurred and cannot be recovered. it should not be considered when making future decisions
How will the general ledger accounts in the trial balance most likely differ if the company were a retail store rather than a wholesale company?
A general ledger account is used to record transactions that a company has. A trial balance has all of the general ledger accounts listed shows all of the debits and credits that a company has faced. A retail store will have smaller product transactions over a wholesale store due to the wholesale store selling in bulk. There will likely be more credits and debits for a retail store whereas a wholesale store may have more debits as they are less likely to have returns.
How will they differ for a hospital or a government unit?
A hospital or government unit will have vastly different general ledger reports due to the type of agency they are. These transactions will deal more with insurance or big dollar companies rather than individuals on a smaller scale. A trial balance is not a financial statement but it used to show balances that an organization has.
Answer:
D : readily convertible and very close to their maturity dates.
Explanation:
Cash equivalents are current liquid assets and comprise cash in hand, cash at the bank, and short term investment whose maturity is in three months or less. A company's total value of cash and cash equivalents is recorded at the top line of the balance sheet as a current asset. They are the most liquid asset of a company.
For an asset to be classified as a cash equivalent, it must have the ability to convert to cash easily. Its value should be relatively stable and be determined with ease. Cash equivalents indicate the financial strengths of a business and its ability to offset the current liabilities.
Answer: $32000
Explanation:
The required reserves will be calculated as:
= Checkable deposit × Legal reserve ratio
= $80000 × 20%
= $16000
Excess reserves = $16000
Actual reserves will now be:
= Required reserves + Excess reserves
= $16,000 + $16,000
= $32,000
