Download App

Analysis of Financial Statements — Book Keeping & Accountancy STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsBook Keeping & AccountancyAnalysis of Financial Statements2 Marks
Question
The short-term deposits are considered as cash equivalent.
✓

Answer

This statement is True.
The short-term deposits are liquid assets. It means deposits are kept for some period (usually less than one year) and they are kept with an intention to get money quickly as and when required.
They are as good as cash and considered as cash equivalent.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "State whether the following statements are true or false with reasons" from Analysis of Financial Statements→Analysis of Financial Statements — all question types→Book Keeping & Accountancy STD 12 Commerce / Arts question papers→Maharashtra Board STD 12 Commerce / Arts question papers→Maharashtra Board question paper generator→

Similar questions

An Inland bill is one that is drawn in one country and payable in another country.
→
A profit and Loss Account is a Real Account.
→
Ratio Analysis is useful for inter-firm comparison.
→
A bill of exchange must be presented to the acceptor on the due date.
→
Profit on Revaluation Account is transferred to Continuing Partner’s Capital Account only.
→
A retiring partner is not entitled to share in the goodwill of the firm.
→
Once the application money is received, directors can immediately proceed with the allotment of shares.
→
The firm must be dissolved on the retirement of a partner.
→
‘Revenue receipts’ means receipts which are not recurring in nature.
→
If a bill is drawn payable ‘on demand’ no grace days are allowed.
→