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on the balance sheet, the cash account includes a) cash on hand b) checks on hand...

on the balance sheet, the cash account includes

a) cash on hand

b) checks on hand that have not been deposited

c) short term securities

d) both a and b

Business   Accounting   
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Answer #1

Solution. The correct answer is d)both a and b

Explanation: On the balance sheet reporting of a company, cash and cash equivalents are recorded in cash account to represent company's true financial position. Option a)cash on hand and b)checks on hand that have not been deposited encompasses company's cash account as such will generate cash in near future.  Option c)short term securities are not generally included as they are subject to changes in open business market.

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