New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    In the cash flow statement, ‘cash and cash

    equivalents’ do not include:
    A Bank balances Correct Answer Incorrect Answer
    B Short-term investments readily convertible into cash and subject to an insignificant risk of changes in value Correct Answer Incorrect Answer
    C Loan from bank Correct Answer Incorrect Answer
    D Loan from bank Correct Answer Incorrect Answer

    Solution

    Loans from banks are financing activities , not part of cash and cash equivalents , which include cash on hand, bank balances, and short-term highly liquid investments.

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