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Practice Activity 9.18 Examples of cash and cash equivalents

Adaeze Nwobu

Give examples of cash and cash equivalents owned by a business enterprise.


See the suggested answer to practice activity 9.18 here.


Suggested answer to practice activity 9.18

Examples of cash include:

i. Physical balance of cash in the business safe.

ii. Favourable bank balance in the business account with the bank. A favourable bank balance represents a credit balance in the business bank’s account with the bank.


Examples of cash equivalents include:

i. Fixed deposits held for 180 days in a bank

ii. Investment in treasury bills

iii.Bank overdrafts repayable on demand

 
 
 

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