Tranvia Company revealed the following information on December 31, 20X1: Cash in checking account350,000Cash in money market account (debt instruments)750,000Treasury bill, purchased last November 1, 20X1, maturing on January 31, 20X23,500,000Time deposit purchased last December 31, 20X1, maturing on March 31, 20X24,000,000 What amount should be reported as cash and cash equivalents on December 31, 20X1?

Cash and cash equivalents are one of the important liquid assets in the business. It means those…

Answered: Tranvia Company revealed the following…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Tranvia Company revealed the following information on December 31, 20X1:

Cash in checking account	350,000
Cash in money market account (debt instruments)	750,000
Treasury bill, purchased last November 1, 20X1, maturing on January 31, 20X2	3,500,000
Time deposit purchased last December 31, 20X1, maturing on March 31, 20X2	4,000,000

What amount should be reported as cash and cash equivalents on December 31, 20X1?

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

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