Which of the following accounts contains the actual money that can be spent by a firm?
A) Retained earnings
B) Notes payable
C) Net worth
D) Common stock
E) Cash and equivalents

Question

Quizplus · Accepted Answer

Cash and equivalents represent the actual money that a firm has available to spend. Retained earnings, net worth, common stock, and notes payable are all accounting measures that do not necessarily represent actual cash on hand.

Which of the Following Accounts Contains the Actual Money That