Question

On an accounting statement of cash flows an "increases(decrease) in cash and cash equivalent" appears as ________________.

• A. A cash flow from operating activities
• B. A cash flow from investing activities
• C. A cash flow from financing activities
• D. None of the above

Answer 1

The correct option is D None of the above

Cash and cash equivalent are the amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kind of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they presents insignificant risk of changes in value because of changes in interest rates.