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Quirk Company has the following cash balances: Cash in Bank $15,742, Payroll Bank Account $6,000, and Plant Expansion Fund Cash $25,000. Explain how each balance should be reported on the balance sheet.
Weegy: Current Assets Cash & Cash Equivalents - 21,742 Non-Current Assets Investment (Plant Expension Fund) 25,000 Since the cash in the Plant Expansion Fund is restricted for a specific purpose reduces its liquidity and must be classified as a [ non-current asset, usually as an long term investment. ] User: The principle of an efficient accounting system that states that an accounting system should accommodate a variety of users is ... (More)
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