Which Of The Following Items Would Be Considered "Cash" And Reflected In A Company's Cash Account? (Check All That Apply.)

Which Of The Following Items Would Be Considered "Cash" And Reflected In A Company's Cash Account? (Check All That Apply.) A. Money orders B. Coins C. Checks D. Prepaid Accounts E. Accounts Receivable
The correct options of this multiple choice question (mcq) are A. B and C as these can be used for cash receipts and payments purposes.

Money orders can be used as cash receipts & payments just like Cash is used to pay bills, pay salaries, receive payments, etc. Money orders can be used as a exchange of money to buy goods or services just like cash does. Money orders contain the guaranteed amount of money agreed upon between two parties for the exchange of goods or services. It is made by third-party distributor like Post Office, MoneyGram Company, etc. They charge a small fee for the process.

Coins, which usually consist of metal, are used as a money, so these can be used as a cash just like paper money. Coins are used to pay bills, paying liability or to acquire assets. However, coins have weights and difficult to use for receipts and payments unlike paper money. These are issued by the central bank of a country. These can be included in the cash balance of a company’s business.

A check / cheque can be used for deposit & withdrawal of money from the customer’s bank account to someone’ else account or to the person named on it i.e., payee or bearer of the check for receipts and payments purposes. The amount of cash is written on a check.

The option D is incorrect choice as Prepaid Accounts are not in the form of physical cash but these represent the payments made in advance against the benefits or services yet to be received.

The option E is also wrong choice as Account Receivables show the amount of cash to be received from customers, who promised to pay for sales on account. However, these are Quick Assets which can be converted into cash very quickly as compare to prepaid assets and inventory

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