Question

short term investments that are very liquid, and can be quickly converted to a specific amount of cash are:petty cashbondingcash equivalentselectronic fund transfersquestion 31.25 ptsthe bank statement is a statement of the banks accounts payable to you, which means:debit memos increase our cash balancecredit memos decrease our cash balancenone of the abovecredit memos increase our cash balance

Explanation:

• Cash Equivalents: Cash equivalents are short - term, highly liquid investments that can be readily converted into known amounts of cash.
• Bank Statement: A bank statement is a record of transactions in a bank account. Credit memos (e.g., interest earned, deposits made by others) increase the cash balance, while debit memos (e.g., service charges) decrease it.

Answer:

• First question: Cash Equivalents
• Second question: Credit memos increase our Cash balance