Question

What are Cash Equivalents?

a.

Long-term investments for future growth

b.

Highly liquid investments subject to significant value changes

c.

Investments held for long-term purposes

d.

Short-term, highly liquid investments with insignificant value changes

Posted under IC 89 Management Accounting

Answer: (d).Short-term, highly liquid investments with insignificant value changes Explanation:Cash equivalents are described as short-term, highly liquid investments that are readily convertible into known amounts of cash and have an insignificant risk of changes in value.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What are Cash Equivalents?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How are Cash Flows defined?

View solution

Q. What are Operating Activities?

View solution

Q. In an insurance company, what does cash flow from operating activities indicate?

View solution

Q. What is the primary focus of Investing Activities?

View solution

Q. Which of the following is an example of a cash flow from Investing Activities?

View solution

Q. What defines Financing Activities?

View solution

Q. In the context of insurance business, what do Financing Activities involve?

View solution

Q. According to Accounting Standard 3 (Revised), what does the treatment of cash flows of special items include?

View solution

Q. What documents and data are crucial for the preparation of Cash Flow Statements?

View solution

Q. What is the purpose of analyzing the Statement of Profit & Loss Account in the context of Cash Flow Statements?

View solution

Q. Apart from Balance Sheets and Profit & Loss Account, what additional data is needed for Cash Flow Statements preparation?

View solution

Q. What is the primary definition of a Fund Flow Statement?

View solution

Q. How is the term "flow of funds" defined?

View solution

Q. What does "Fund" mean?

View solution

Q. What is the formula given for calculating Funds?

View solution

Q. What are the outlined sources of working capital?

View solution

Q. What is considered an application of working capital or funds?

View solution

Q. What does a Cash Flow Statement report?

View solution

Q. How is "Cash" defined?

View solution

Q. What is the definition of Cash Equivalents?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

General Knowledge

Expand your horizons and stay informed about the world with our General Knowledge...

Human Resource Management

Explore the dynamic field of Human Resource Management (HRM) with our dedicated...

IC38 Life Insurance Agent Exam

Prepare for success in the Insurance Institute of India (III) IC38 IRDA examination...

Non Verbal Reasoning

Enhance your cognitive abilities with our Non-Verbal Reasoning category. Dive into...

Waste Water Engineering

Navigate the challenges of wastewater treatment and management with our Waste Water...

Environment Management

Master the art of Environment Management with our specialized category. Explore...

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

Financial Management and Financial Markets

Master the world of finance with our Financial Management and Financial Markets...