📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Which of the following Statement is correct with respect

      to cash and cash equivalents?
      A Cash and cash equivalents include cash on hand only Correct Answer Incorrect Answer
      B Earmarked balance with banks is not separately disclosed in balance sheet Correct Answer Incorrect Answer
      C Bank deposits of less than 12 months need not be disclosed separately Correct Answer Incorrect Answer
      D Drafts on hand have to be disclosed separately Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      As per Schedule III of Companies Act, 2013, Cash and Cash Equivalents may be classified as Balances with banks, Cheques, drafts on hand, cash on hand among others. Separate disclosures for: ·         earmarked balances with banks ·         Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments ·         Repatriation restrictions, if any, in respect of cash and bank balances ·         Bank deposits with more than twelve months maturity (as such, it can be said that deposits of less than 12 months need not be disclosed separately)

      Practice Next
      More Banking System in India Questions
      ask-question