Question

When an accountant records_ on hand, they are noting a company's ____

A. human resources; total liquid assets
B. cash; total of amount dollars, money orders, checks, and other forms of
money
C. supplies; materials that need to be purchased soon
D. inventory; number of employees on payroll

Answer 1

Answer: Choice B

Explanation: The phrase "cash on hand" means the amount of money the company has. It could be literal cash as the phrase directly implies. Or it could be near equivalents to cash. A near equivalent is something you can convert to cash fairly easily, meaning a bank would readily accept it. The only drawback is that it's not actual cash so its not as liquid as cash itself. Also, you would need to take into account the delay time between deposit and when the bank balance is updated.