Question

Which of the following are included in ‘Cash’ for the purpose of preparing a Cash Flow Statement?

1. Cash in hand
2. Marketable securities
3. Demand deposits with banks
4. Trade receivables

Choose the correct option from the following:

Options

• (i) and (ii)

• (i) and (iii)

• (i) and (iv)

• (ii) and (iii)

Answer 1

(i) and (iii)

Explanation:

Cash in hand and demand deposits with banks are the most basic forms of cash used in cash flow reporting. Marketable securities and trade receivables are either cash equivalents or current assets, not “cash” itself.