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Let's break down the problem to find the correct balances of the following accounts: 

1. **Cash**
2. **Cash Equivalents**
3. **Cash and Cash Equivalents**

### **Cash**

Typically, the following items are considered **cash**:
- Manager's check (₱70,000)
- Bank drafts (₱20,000)
- Cash in bank (₱1,050,000)
- Traveler's checks (₱100,000)
- Postal money orders (₱10,000)
- Petty cash fund (₱15,000)
  
Total cash:  
\[
70,000 + 20,000 + 1,050,000 + 100,000 + 10,000 + 15,000 = ₱1,265,000
\]

### **Cash Equivalents**

Cash equivalents typically include short-term investments that are highly liquid, maturing in 3 months or less. The following would qualify as **cash equivalents**:
- Time deposit (20 days) – ₱45,000
- Treasury bills, purchased Dec. 16, 2021, due Mar. 15, 2022 (since it's less than 90 days from the balance sheet date) – ₱50,000
- Time deposit (90 days) – ₱170,000

Total cash equivalents:  
\[
45,000 + 50,000 + 170,000 = ₱265,000
\]

### **Cash and Cash Equivalents**

The total **cash and cash equivalents** would be the sum of both cash and cash equivalents:

\[
1,265,000 + 265,000 = ₱1,530,000
\]

### Final Balances:
1. **Cash**: ₱1,265,000
2. **Cash Equivalents**: ₱265,000
3. **Cash and Cash Equivalents**: ₱1,530,000

Would you like to dive deeper into specific terms or calculations?

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Here are 5 relative questions to explore further:
1. What other financial instruments can be considered cash equivalents?
2. How does the maturity period affect the classification of cash equivalents?
3. Why are certain funds like "sinking funds" excluded from cash equivalents?
4. What differentiates petty cash from other types of cash accounts?
5. How does timing of treasury bills impact their classification on the balance sheet?

**Tip:** Always verify the maturity and liquidity of instruments when classifying them as cash equivalents, especially near reporting dates!

How much are the correct balances of the following accounts: 1. Cash? 2. Cash Equivalents? 3. Cash and Cash Equivalents?

Learn how to calculate the correct balances for cash, cash equivalents, and total cash and cash equivalents from a list of financial items. This solution covers basic financial accounting principles and the classification of liquid assets.

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