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 equity securities classified as current assets.

Question

Quizplus · Accepted Answer

The term cash in a statement of cash flows includes bank accounts, cash on hand, and cash equivalents. Cash equivalents are highly liquid investments with maturities of three months or less, such as money market funds and Treasury bills. Equity securities classified as current assets are not included in cash.

In a Statement of Cash Flows, the Term Cash Includes