Which of the following items would you classify as cash or cash equivalents in line with IAS 7?

Yes, the correct answer is option no.3

3.....................................is correct answer.

My answer is option #3 belongs to the category cash/cash equivalents.

 

3. Petty cash, bank account balance, short-term investments readily convertible to cash which are subject to insignificant risk of changes in value.

Answer no3.........................

Definitely option3 is the right answer. According to IAS, Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

related to ias7 

Cash equivalents are short-term, highly liquid investments that are readily convertible to known

amounts of cash and which are subject to an insignificant risk of changes in value.

 

so as the term deposit time more than3 month so the best answer is 3. Petty cash, bank account balance, short-term investments readily convertible to cash which are subject to insignificant risk of changes in value.

 

 

The answer is (3) >>>>>>>>>>>>>>>

Option3 is the right answer

IAS7 Statement of Cash Flows requires an entity to present a statement of cash flows as an integral part of its primary financial statements. Cash flows are classified and presented into operating activities (either using the 'direct' or 'indirect' method), investing activities or financing activities, with the latter two categories generally presented on a gross basis.

IAS7 was reissued in December, retitled in September, and is operative for financial statements covering periods beginning on or after1 January.

Cash & Bank are cash or cash equivalents