CAF-1 · Chapter 14 · Question 1 of 15
Under IAS 7, how are 'cash equivalents' defined?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Short-term, highly liquid investments readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.
Explanation
IAS 7 defines cash equivalents strictly as short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.
More IAS 7 Statement of Cash Flows MCQs
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