Where will a bank deposit with 80 days of maturity included in cash flow statement of the company?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- Cash and cash equivalents.
A bank deposit with 80 days of maturity included in Cash and cash equivalents in the cash flow statement of the company.
An investment normally qualifies as cash equivalents only when it has a short maturity, of say, three months or less from the date of acquisition.