Money orders are considered cash.

Money Orders

A payment order for a pre-specified amount of money; it functions as a form of prepaid payment instrument.

Cash

Liquid assets held or accessed by an entity for transactions, funding liabilities, and operational purposes.

Learn the theoretical underpinnings and significance of internal control operations over cash and assorted assets.

Verified Answer

Final Answer :

True

Explanation :

Money orders are considered cash equivalents because they are prepaid and cannot bounce like a personal check.

Learning Objectives

Learn the theoretical underpinnings and significance of internal control operations over cash and assorted assets.