Question

What may be included under the heading of “cash”?

Short answer

Bank deposits, cash in hand, checks issued, money orders received, etc.

Step-by-step solution

Meaning of Cash and Cash Equivalents

The items which can be converted into cash very quicklyare considered cash and cash equivalent.

List of times included in cash

The lists of items that are included under the head of cash are as follows:

• The amount of currency held in the hands, including coins, notes, and cash deposited into the bank.
• The short-term financial instruments such as cheques, money orders, bank overdraft, etc.