Commerce Exam > Commerce Videos > Accountancy Class 12 > Cash and cash Equivalents
Cash and cash Equivalents Video Lecture | Accountancy Class 12 - Commerce
|
47 videos|180 docs|56 tests
|
FAQs on Cash and cash Equivalents Video Lecture - Accountancy Class 12 - Commerce
| 1. What are cash and cash equivalents in commerce? |  |
Ans. Cash and cash equivalents in commerce refer to liquid assets that can be easily converted into cash within a short period. This includes actual cash on hand, as well as highly liquid investments such as Treasury bills, commercial paper, and money market funds.
| 2. Why are cash and cash equivalents important in commerce? | |
Ans. Cash and cash equivalents play a crucial role in commerce as they provide businesses with the necessary liquidity to meet their short-term obligations. They ensure that a company has enough resources to pay for day-to-day expenses, manage unexpected cash flow fluctuations, and seize immediate investment opportunities.
| 3. How are cash and cash equivalents reported in financial statements? | |
Ans. Cash is typically reported under the "Current Assets" section of a company's balance sheet, while cash equivalents are also included in this category. The specific breakdown of cash and cash equivalents is usually disclosed in the notes to the financial statements, providing details of the different types of cash equivalents held by the company.
| 4. What is the difference between cash and cash equivalents? | |
Ans. Cash refers to physical currency, such as coins and banknotes, along with deposits in bank accounts that can be withdrawn on-demand. On the other hand, cash equivalents are short-term investments that can be readily converted into cash with minimal risk of value fluctuations, typically with a maturity period of three months or less.
| 5. How can businesses effectively manage their cash and cash equivalents? | |
Ans. Effective cash and cash equivalents management involves maintaining an optimal cash balance to meet operational needs while minimizing excess idle cash. Businesses can achieve this through proper cash flow forecasting, efficient accounts receivable and payable management, implementing cash conservation techniques, and exploring investment options for surplus cash to generate additional income.
About this Video
|
4.96/5 Rating |
|
Nov 21, 2024 Last updated |
Video Description: Cash and cash Equivalents for Commerce 2024 is part of Accountancy Class 12 preparation.
The notes and questions for Cash and cash Equivalents have been prepared according to the Commerce exam syllabus.
Information about Cash and cash Equivalents covers all important topics for Commerce 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Cash and cash Equivalents.
Introduction of Cash and cash Equivalents in English is available as part of our Accountancy Class 12 for Commerce & Cash and cash Equivalents in
Hindi for Accountancy Class 12 course. Download more important topics related with notes, lectures and mock test series for
Commerce Exam by signing up for free.
Description
Video Lecture & Questions for Cash and cash Equivalents Video Lecture | Accountancy Class 12 - Commerce - Commerce full syllabus preparation | Free video for Commerce exam to prepare for Accountancy Class 12.
Information about Cash and cash Equivalents
Here you can find the meaning of Cash and cash Equivalents defined & explained in the simplest way possible.
Besides explaining types of Cash and cash Equivalents theory, EduRev gives you an ample number of questions to practice Cash and cash Equivalents tests,
examples and also practice Commerce tests.
|
47 videos|180 docs|56 tests
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Semester Notes
,Important questions
,ppt
,Extra Questions
,Viva Questions
,MCQs
,Summary
,Cash and cash Equivalents Video Lecture | Accountancy Class 12 - Commerce
,Objective type Questions
,practice quizzes
,shortcuts and tricks
,study material
,mock tests for examination
,Cash and cash Equivalents Video Lecture | Accountancy Class 12 - Commerce
,Free
,Exam
,video lectures
,Previous Year Questions with Solutions
,past year papers
,Cash and cash Equivalents Video Lecture | Accountancy Class 12 - Commerce
,Sample Paper
;
Study Cash and cash Equivalents on the App
Students of Commerce can study Cash and cash Equivalents alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Cash and cash Equivalents,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Cash and cash Equivalents is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup