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    Question

    The Bank overdraft repayable on demand will be reported

    in the cash flow statement as _____
    A Cash flow from operating activities Correct Answer Incorrect Answer
    B Cash flow from investing activities Correct Answer Incorrect Answer
    C Cash flow from financing activities Correct Answer Incorrect Answer
    D Cash and cash equivalents Correct Answer Incorrect Answer

    Solution

    Cash or cash equivalents include something which is equal to cash or can be converted into cash readily for meeting short term commitments . Bank overdrafts are a part of any entity’s cash management system and are included as a component of cash equivalents .

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