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!

IC38 Life Insurance Agent Exam

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

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...

Basic Chemical Engineering

Get a solid foundation in Chemical Engineering with our Basic Chemical Engineering...

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Bioinformatics

Unlock the power of data analysis in biology with our Bioinformatics category....

Molecular Biology

Dive into the intricate world of molecular biology with our specialized category....

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Drug and Pharmaceutical Biotechnology

Navigate the world of pharmaceuticals and biotechnology with our dedicated category....

Environmental Engineering

Explore the critical field of Environmental Engineering with our dedicated category....