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Select the Appropriate Answer from the Alternatives Given Below and Rewrite the Completed Statement : - Book Keeping and Accountancy

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Question

Select the appropriate answer from the alternatives given below & rewrite the completed statement :
The short term deposits are _______________.

Options

  •  net cash

  • cash equivalent

  • cash flow

  • cash outflow

MCQ

Solution

The short term deposits are cash equivalent.

Explanation: Cash equivalents are those that can be converted into cash immediately. They are highly liquid in nature. For example, marketable securities, short-term deposits etc.

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Cash Flow Analysis
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Chapter 12: Analysis of Financial Statements - Exercise 2 [Page 384]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 12 Analysis of Financial Statements
Exercise 2 | Q 3 | Page 384
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