Question : Examples of Cash Equivalent are
Option 1: Current Investments and Treasury Bills
Option 2: Commercial Papers
Option 3: Preference Shares if these are redeemable within three months from the date of purchase
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
Examples of cash and cash equivalents include current investments such as treasury bills and commercial papers, as well as preference shares if they are redeemable within three months from the date of purchase. These are highly liquid and easily convertible into cash, serving as short-term investment options. Hence, the correct option is 4.
Question : Which shareholder has the right to receive the arrears of dividend from future profit?
Option 1: Redeemable preference shares
Option 2: Non – redeemable preference shares
Option 3: Cumulative preference shares
Option 4: Non- cumulative preference shares
Question : Which shareholder returns their capital after some specified time?
Option 2: Non – Redeemable preference shares
Option 4: Participating preference shares
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