Home › Bihar Board Class 12 (Commerce) › Accountancy › Cash Flow Statement › An investment normally qualifies as a cash equiv…
An investment normally qualifies as a cash equivalent if its maturity is at most how long?
AOne week
BThree months
COne year
DThree years
Answer & Solution
Correct answer: B. Three months
AS-3 treats an investment as a cash equivalent only when it has a short maturity of about three months or less from acquisition.
Related questions
Which transaction is a non-cash financing activity?Payments to suppliers for goods and services belong to which activity?Repayment of debt principal, including capital leases, is classed under which activity?Which payment is an example of an investing activity?In the indirect method, a rise in a liability is treated how?The indirect method of preparing a cash flow statement starts from which item?Why can a firm with a profit still be in financial trouble, as the cash flow statement shoWhich item is left out of a cash flow statement as it involves no cash?