1. A_____ would be properly classified as cash.
A. bond sinking fund composed entirely of cash
B. savings account
C. certificate of deposit
D. post-dated cheque on hand
2. How should Trinitron Inc. report an IOU from Julius Corporation?
A. as an investment
B. as cash
C. as a receivable
D. as petty cash
3. Which of the following MOST closely describes a compensating balance?
A. Asavings account maintained at the bank equal to the amount of all
B. The portion of any deposit maintained by a corporation which constitutes
support for existing borrowing arrangements of the corporation with the
C. Abalance held in a time or demand deposit account that is equal to the interest
currently due on a loan.
D. An amount of capital stock held in the company's treasury equal to
outstanding loan commitments.
4. In addition to being short-term, highly liquid investments that are readily
convertible into known amounts of cash, which of the following is also