For purposes of the statement of cash flows,"cash" includes cash on hand,cash in the bank and cash equivalents.

Question

Quizplus · Accepted Answer

Cash on hand, cash in the bank, and cash equivalents are all considered cash for the purpose of preparing the statement of cash flows. Cash equivalents include highly liquid investments that are easily convertible to cash, such as money market funds, treasury bills, and short-term bonds.

For Purposes of the Statement of Cash Flows,"cash" Includes Cash