F3 - M1 - Cash and Cash Equivalents

Question 1

Which kind of investments can be treated as cash equivivlaent

Answer 1

Investment which are maturing wihin 3 months from date of (purchase) can be treated as Cash equivivalent

cash in any restricted funds NOT to take in Account , for example Cash in bond sinking fund Account.

Marketable equity and debt securities are both classified as investments and would be included in the investments line. not as cash equivivalent.