Is an investment in Treasury bills always classified as a cash equivalent? Explain

Q: Which one of the following is not a part of money market? a. Call money market b. Commercial…

A:

Q: Define these money market instruments 1. Treasury bills 2. Certificates of Deposits

A: Money market is the market in which the debt intruments less than one year are deal with.

Q: Which of the following is not a primary function of Money? a. All the options are correct b.…

A: Money is any item or verifiable record that is generally accepted as payment for goods and services

Q: What do you mean by bank reconciliation?

A: INTRODUCTION: Account reconciliation is the process of comparing internal financial records and…

Q: Explain in detail the role of Money Market with respect to financial market?

A: Financial market is a market where the financial instruments can be traded. Financial market can be…

Q: Which of the following is not a Money Market Instrument? a. Commercial Paper b. Debentures c.…

A: Money market is related to short term debt instruments and not long term debt instruments.

Q: Wildhorse Service Company had checks outstanding totaling $40100 on its May bank reconciliation. In…

A: An outstanding check is a check that a company has issued and recorded in its general ledger…

Q: What are the considerations for recording and recognizing cash discounts received?

A: Cash discounts, also known as sales discounts or prompt payment discounts, are reductions in the…

Q: Recognize the link between money and credit? Explain

A: Money is defined as the financial medium used to facilitate transactions between parties. Money…

Q: What is the term of interest on bank overdraft?

A: On basis of creditworthiness, a bank allows a person to draw excess money from his account…

Q: What is Internal Rate of Return - All Cash Deal?  Please provide examples

A: Internal Rate of Return (IRR)IRR is the annualized effective compounded rate or return that can be…

Q: What is the maturity period required for an investment to qualify under the definitions of a cash…

A: Cash and cash equivalents correspond to just the line item on the balance sheet that lists the value…

Q: 4. How can interest earned or paid on short-termsecurities or loans be incorporated in the…

A: Introduction: Interest earned is nothing but an amount earned by a firm on bank accounts or other…

Q: What is the difference between the sources (in nows) and uses (out nows) of cash?

A: The question is based on the concept of cash flow statement and cash flow analysis for a particular…

Q: Example scenarios of commodity money, fiat money, representative money, fiduciary money and…

A: One of the important tools, in order to buy and sell the goods and services in the market, is known…

Q: Why do banks hold reserves? How do banks decisions on reserves affect the money supply?

A: Bank reserves are the minimum cash requirements that must be kept by financial firms or institutions…

Q: Which of the following is part of the payments system of the economy? A. currency B. demand deposits…

A: A payment system is any mechanism that settles banking transactions by transferring monetary value.…

Q: what is currency issuance in monetary policy? give examples

A: Monetary policy is one of the important policies which is developed with a view to manage and…

Q: Discuss the concept of cash equivalents? (short answer)

A: Cash Equivalent Cash and cash equivalent are highly liquid current Assets.  Cash is the liquid of…

Q: What are the different risks associated in the accounting of cash

A: The element of risk arises in each and every area and how well we can minimise or reduce the risk is…

Q: Why could cash be falling in a set of accounts?

A: Cash can fall in a set of accounts for a variety of reasons. These include making large purchases,…

Q: Explain the context of monetary policy : financial stability? Example?

A: Monetary policies are actions taken to affect the economy of a country. Monetary policy basic motive…

Q: What is a "proof of cash? What purpose does it serve?

A: A four-column bank statement prepared by auditors is called proof of cash. It has a detailed…

Q: Which one of the theories states that “the rate of interest is set in the market for money…

A: Interest rates are fluctuated based on different parameters of the economy. There are different…

Q: Why are investments in marketable securities shown sepa-rately from cash equivalents in the balance…

A:

Q: What is bank reconciwhliation

A: Bank Reconciliation Statement:  Bank statement is generally provided by the bank. Apart from bank…

Q: What are the components of cash ?

A: Required  What are the components of cash.

Q: Which of the following is considered as cash equivalents? Bank overdraft Trade AR Money orders All…

A: Cash and cash equivalents are those short term assets which can be converted into cash in short…

Q: Which one of the following assets is not considered as cash equivalent? Guaranteed investment…

A: Cash equivalents are form of liquid and current assets which can be converted into cash into short…

Q: What is the Time Value of Money (TVM)? Specifically, how do inflation and compound  interest effect…

A: Time value of money states that a sum of money has more value today than the same sum at a future…

Q: Note payments reduce cash and are related to long-term debt. Do these facts automatically lead to…

A: The interest payments on note payments usually reduce the cash balance of the company as they are…

Q: Why is it advantageous for a company to finance its receivables?

A: Accounts receivable is the amount due to a firm for the use of goods and services but not yet paid…