Question

Which of the following would be classified as a? 'cash equivalent'? Answer yes or no

a) cash on hand

b) cash at the bank

c) accounts receivable

d) inventory

e) accouts payable

e) accounts payable

f) prepayments

g) bank overdraft

h) debentures

i) deposits at call

j) bill receivable (60 days)

k) loan receivable (3 months)

I) gold bullion

Answer 1

Answer:	Which of the following would be classified as a? 'cash equivalent'? Answer yes or no
	Cash and cash equivalent are either cash or asset that are ready convertible into money like cions, gold, Bullions, treasury bills etc
	Particulars	Answer	Reason
	a) cash on hand	Yes	It is included in cash
	b) cash at the bank	Yes	It is included in cash
	c) accounts receivable	No	As it not liqiud and readily convertible into money
	d) inventory	No	As it not liqiud and readily convertible into money
	e) accouts payable	No	As it is an liability not an asset
	e) accounts payable	No	As it is an liability not an asset
	f) prepayments	No	As it prepaid payment not readily convertible into money
	g) bank overdraft	No	As it is an liability not an asset
	h) debentures	No	As it is an liability not an asset
	i) deposits at call	Yes	It is included in cash and cash equivalent
	j) bill receivable (60 days)	No	As it not readily convertible into money
	k) loan receivable (3 months)	No	As it not readily convertible into money
	I) gold bullion	Yes	It is included in cash equivalent.