In the cash flow statement, cash is defined as:
A)quick assets.
B)literal cash on hand or on demand deposit, plus cash equivalents.
C)literal cash on hand or on demand deposit, plus marketable securities.
D)all of the above.

Question

Quizplus · Accepted Answer

Cash in the cash flow statement refers to literal cash on hand or on demand deposit, plus cash equivalents, which can be easily converted into cash. Marketable securities may be included in the calculation of cash equivalents, but not quick assets in general. Therefore, choice B is the best option.

In the Cash Flow Statement, Cash Is Defined As