In a statement of cash flows,the term "cash" includes:
A)Only money on deposit in bank accounts.
B)Only bank accounts and cash on hand.
C)Bank accounts,cash on hand,and cash equivalents.
D)Bank accounts,cash on hand,cash equivalents,and marketable securities classified as current assets.

Question

Quizplus · Accepted Answer

In a statement of cash flows, the term "cash" includes bank accounts, cash on hand, and cash equivalents. Cash equivalents are highly liquid investments with a maturity of three months or less, such as treasury bills and commercial paper. Marketable securities are not always considered cash as they may not be easily convertible to cash.

In a Statement of Cash Flows,the Term "Cash" Includes