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Question : _____________comprises Cash on Hand and demand deposits with banks.

Option 1: Fixed assets

Option 2: Inventory

Option 3: Cash

Option 4: None of the above


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Cash


Solution : Answer = Cash

Cash comprises of cash in hand and demand deposit with the bank. It represents liquid assets readily available for transactions and payments. Unlike fixed assets and inventory, which are non-liquid assets, cash is easily accessible and can be used for immediate financial needs, making it a crucial component of a company's liquidity.
Hence, the correct option is 3.

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