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Commerce · Q46

Accounting

Graduate and Post Graduate · Commerce · question 46

Q46

Identify the asset from the following

A.
Cash and cash equivalent
Answer
B.
Creditors
C.
Notes payable
D.
Bank loan

Answer: Option A

Solution

Answer: Option A
Solution:
Cash and cash equivalent are the asset from the following. Cash and cash equivalents (CCE) are the most liquid current assets found on a business's balance sheet. Cash equivalents are short-term commitments "with temporarily idle cash and easily convertible into a known cash amount".