multiple choice_conceptual
Which if the following is not considered cash for financial reporting?
No choices posted.
To determine which of the following is not considered cash for financial reporting, we need to understand what cash is defined as in accounting terms. Cash is defined as currency on hand, which includes any items that are readily available to be used for transactions, such as coins, banknotes, and money held in bank accounts.
Now we can look at the options and determine which one does not fit the definition of cash:
A) Bank account balance: Bank account balances are considered cash because they represent the money held in a bank account and are readily available for use in transactions. Therefore, this option cannot be the correct answer.
B) Petty cash: Petty cash refers to a small amount of cash that is kept on hand for minor expenses. It is also considered cash because it is readily available for transactions. Thus, this option is not the correct answer.
C) Accounts receivable: Accounts receivable represents the money owed to a company by its customers for goods or services sold on credit. It is not considered cash because it has not been received in the form of currency or a bank deposit.
D) Check received from a customer: A check received from a customer is a negotiable instrument that can be deposited in a bank account to convert it into cash. Therefore, this option is not the correct answer.
Based on the explanations provided, the correct answer is C) Accounts receivable, as it is not considered cash for financial reporting purposes.