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Which of the following is considered as cash equivalents? - Accounts

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Question

Which of the following is considered as cash equivalents?

Options

  • Bank deposits for 2 months

  • Commercial papers

  • Treasury bills

  • All of the above

MCQ
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Solution

All of the above.

Explanation:

All listed items (bank deposits for 2 months, commercial papers, and treasury bills) meet the cash equivalents criteria of being short-term and highly liquid.

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Chapter 13: Cash Flow Statement - OBJECTIVE TYPE QUESTIONS [Page 13.158]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 13 Cash Flow Statement
OBJECTIVE TYPE QUESTIONS | Q (A) 36. | Page 13.158
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