Cash and Cash Equivalents are highly liquid assets that can be easily converted into cash within a short period of time, typically within three months. They are considered to be the most liquid form of assets and are crucial for the day-to-day operations of a business. Cash and Cash Equivalents include cash in hand, cheques in hand, and cash at bank. However, they do not include inventories.

Cash in hand:
Cash in hand refers to the physical currency that a business holds. It includes banknotes and coins that are readily available for use in transactions. Cash in hand is an important component of a company's cash management system as it allows for immediate payment of expenses and other financial obligations.

Cheques in hand:
Cheques in hand are written orders to pay a specified amount of money from a bank account. They are issued by a company but have not yet been presented to the bank for payment. Cheques in hand are considered as cash equivalents because they can be easily converted into cash once they are deposited and cleared by the bank.

Cash at bank:
Cash at bank refers to the funds that a company holds in its bank accounts. It includes both current accounts and savings accounts. Cash at bank is highly liquid and can be easily accessed by the company for its operational needs. It provides a secure and convenient way of storing and managing funds. Cash at bank also includes any short-term investments that can be readily converted into cash, such as money market funds.

Inventories:
Inventories, on the other hand, are not considered as cash or cash equivalents. They are assets held by a company for sale in the ordinary course of business or for use in the production of goods or services. Inventories include raw materials, work-in-progress, and finished goods. While inventories have value, they are not readily convertible into cash and therefore do not fall under the category of cash and cash equivalents.

In conclusion, cash and cash equivalents include cash in hand, cheques in hand, and cash at bank. These assets are highly liquid and can be easily converted into cash. However, inventories are not considered as cash or cash equivalents as they are not readily convertible into cash.