Financial managers broaden their definition of cash to include:

Question

Quizplus · Accepted Answer

Financial managers typically include currency, chequeing deposits, undeposited cheques, and short-term marketable securities in their definition of cash. Equities and bonds are not considered cash, but may be included in a broader definition of current assets. Choice A includes equities and bonds, which are not typically considered cash, and omits undeposited cheques. Choice B includes undeposited cheques, but omits short-term marketable securities. Choice C is close, but does not include undeposited cheques.

Financial Managers Broaden Their Definition of Cash to Include