Practice Activity 9.18 Examples of cash and cash equivalents
- Adaeze Nwobu
- Apr 11, 2023
- 1 min read
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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