Cash and Liquid Assets on the Balance Sheet The following accounts are listed in a company’s…

Cash and Liquid Assets on the Balance Sheet

The following accounts are listed in a company’s general ledger

Required

1. Which items are cash equivalents?

2. Explain where items that are not cash equivalents should be classified on the balance sheet.

3. What are the amount and the direction of change in cash and cash equivalents for 2008? Is the

company as liquid at the end of 2008 as it was at the end of 2007? Explain your answer.