16. The following statements relate to cash. Which statements is true? a. b. C. The term cash equivalent refers to demand credit instruments such as money order and bank drafts The purpose of establishing a petty cash fund is to keep enough cash on hand to cover all normal operating expenses for a period of time Classication of a restricted cash balance as current or noncurrent should parallel the classication of the related obligation for which cash was restricted Compensating balance required by a bank should always be excluded from cash and cash equivalents