Short term highly liquid investments that are readily convertible in to known amounts of cash and which are subject to insignificant risk of changes in value is known as ___

Cash at bank

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Investment in shares

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Cash equivalents

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None of these

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Solution

The correct option is C
Cash equivalents

Short term highly liquid investments that are readily convertible in to known amounts of cash and which are subject to insignificant risk of changes in value is known as cash equivalents

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Q. assets means cash or cash equivalents which can be easily converted to cash in a very short time.

Q. In a statement of cash flows, a company investing in short-term financing investments and in fixed assets results in ______________.

Q. Identify the transactions as belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:

(a) Cash Sale of Goods	(b) Cash Received against Revenue from Services rendered
(c) Cash Purchase of Goods	(d) Cash Paid against Services Taken
(e) Patents Purchased	(f) Marketable Securities
(g) Bank Overdraft	(h) Proceeds from Issue of Debentures
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(k) Commission Received	(l) Redemption of Debentures
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Q. Normally, what should be the maturity period for a short term investment from the date of its acquisition to be qualified as cash equivalents?

___ refers to the investment in all the current assets such as cash, bills receivable, prepaid expenses, inventories, etc. These current assets get converted into cash within a year.

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Short term highly liquid investments that are readily convertible in to known amounts of cash and which are subject to insignificant risk of changes in value is known as ___

The correct option is C Cash equivalents Short term highly liquid investments that are readily convertible in to known amounts of cash and which are subject to insignificant risk of changes in value is known as cash equivalents

The correct option is C
Cash equivalents

Short term highly liquid investments that are readily convertible in to known amounts of cash and which are subject to insignificant risk of changes in value is known as cash equivalents