For some of Canadian companies...
2. Do you think that it is more useful to the user of the financial statement to classify cash separately rather than combining cash with cash equivalents? Explain your answer.
3. Does classifying cash and cash equivalents together on the balance sheet contradict any generally accepted accounting principles?© BrainMass Inc. brainmass.com June 3, 2020, 6:21 pm ad1c9bdddf
Some companies disclose cash as a separate account because they want to give proper disclosure of their assets. The cash account on the balance sheet should include coin and currency on hand, deposits in checking and savings ...
The solution explain the disclosure of cash and cash equivalents in the financial statements.