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Home Questions CR3NSDM77J
Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

Which of the following is a highly liquid investment for a company?

Options:

Cash convertible investment

Short-term investment

Cash equivalents

Marketable securities

Correct Answer:

Cash equivalents

Explanation:

The correct answer is option 3- Cash equivalents.

Cash equivalents is a highly liquid investment for a company.

Cash and cash equivalents are short-term highly liquid investment that is readily convertible into a known amount of cash and which is subjected to an insignificant risk of changes in value.

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