CMA Intermediate · Corporate Accounting and Auditing · Cash Flow Statement
As per Ind AS 7, which of the following is stated to make up 'cash'?
Under Ind AS 7, cash comprises cash on hand and demand deposits. Items such as one-year fixed deposits, marketable securities or receivables are not part of cash, because they are not cash on hand or deposits repayable on demand.
- ACash on hand and demand depositsCorrect
- BCash on hand and fixed deposits of one year
- CCash on hand and marketable securities
- DCash on hand and trade receivables due within a month
Explanation
Paragraph 6 of Ind AS 7 says cash comprises cash on hand and demand deposits. Fixed deposits, securities and receivables are not cash under this definition.
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