Answer:
These two are cash equivalents:
Money market funds
Three-month Treasury bills
Because they represent short-term investments that a company makes with the goal of getting rid of any excess cash that would otherwise be left unused while it is losing value because of inflation.
In other words, the main goal of investments in money market funds and three-month treasury bills, is to prevent cash from losing value due to inflation, and because of that, those investments are considered cash equivalents.
<span>a contractionary fiscal policy that will shift the aggregate demand curve to the left by an amount equal to the initial change in investment times the spending multiplier.</span>
Answer:
Explanation:
The preparation of the statement of retained earnings for Amos Company is shown below:
Retained earnings at December 31, 2018 (before discovery of error) $858,000
Less: Depreciation expense two years ago -$45,600
Add: net income $209,000
Less: Cash dividends declared and paid during the year -$11,000
Retained earnings at December 31, 2019 $1,010,400
