Cash equivalents' is defined as 'short-term, ___________ investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of change in value'. Select one alternative: partially liquid highly liquid non-liquid non-current

Q: Relevant cash inflows and outflows in a discounted cash flow analysis are the differences in…

A: True

Q: When considering the discount rate to use for discounting cash flows of an entire company, we can…

A: The discount rate is the loan cost used to decide the current worth of future incomes in a…

Q: Long-term investments include cash that will be used to support current operations. True or False…

A: A long-term investment is an asset presented on the asset side of the balance sheet which represents…

Q: Identify which from the following scenarios depict relevant cash flows in making the decision…

A: While making decision for accepting two alternatives, we always consider relevant cost and relevant…

Q: An analyst who is interested in assessing a company’s fi nancial position is most likely to focus on…

A: Financial statement includes statement of cash flows, Balance sheet and Profit and loss statement.

Q: Which of the following statement is true about cash equivalents? a. They are not treated as cash b.…

A: All of the following is true about cash equivalents ..... They are not treated as cash&. They…

Q: Assuming that we are not able to accurately predict cash flows , generally decreased risk is thought…

A: Cash flow at risk at risk tells us how changes in market factors can change the future cash flows.…

Q: Which of the following statements is correct? The NPV method assumes that cash flows will be…

A: Solution:- Net Present Value (NPV) means the net of the present value of cash inflows and initial…

Q: Which of these methods discount levered cash flows? a. APV b. WACC c. FTE d. both APV and FTE

A: The adjusted present value (APV) method calculates an investment's value as if it were financed only…

Q: Which of the following shows the effects of providing services for cash on the accounting equation?…

A: 1. Accounting Equation - Accounting Equation is calculated using following equation - Assets =…

Q: Current Assets do not include Select one: a. Inventories b. All the options c. Trade Receivables d.…

A: Current assets are assets that are easily converted into cash within one year.

Q: Liquidity

A: A firm’s liquidity position plays a very important role in ensuring its survival in the market.

Q: Which of the following is NOT considered to be an operating current asset? O cash inventories…

A: An operating current asset is an asset that is required on a day-to-day basis in the business and…

Q: -cash equivalent is:

A: Answer:   Option 3

Q: Economic exposure represents the impact of exchange rate fluctuations on a firm’s future cash flows

A: The answer along with the explanation is provided below:

Q: Which of the following statements is incorrect? Cash fund that is being held specifically for the…

A: Lets understand the basics. Cash or cash equivalent is an item which are either cash or either…

Q: Which of the following is not a source of funds for immediate liquidity purposes? Question 9Answer…

A: The correct answer is "Proceeds from an IPO"Initial Public Offering is the issue of shares by the…

Q: echnical problems associated with the internal rate of return include:

A: IRR (Internal Rate of Return): It is the rate of return that makes the net present value of the…

Q: A asset is one which can be quickly converted into cash without significant loss in value.

A: An asset is a resource which is owned by the company in order to operate the functions and…

Q: Question 2   Which one of the following methods of analysis could completely ignore some cash flows?…

A: Capital Budgeting involves various techniques which are used to evaluate different proposals to make…

Q: In the net present method future, cash flows are discounted to their present value a)TRUE b) FALSE

A: Under net present value method all future cash flows are discounted to their present value .

Q: When adjusting for inflation, there are two methods. The real- rate method where the discount rate…

A: The real rate method involves adjusting the discount rate or interest rate to account for inflation.…

Q: limitation of discounted cash flow method.

A: Discounted cash flows -   - Discounted cash flows method is used to estimate the value of an…

Q: statements are true of long-term investments? They can be considered cash equivalents.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Consider the following statements concerning the payback method of investment appraisal. 1. It…

A: The payback method of investment appraisal is a simple technique that calculates the amount of time…

Q: The funds invested in current assets are termed as

A: Working capital (WC) is the amount that arises from the difference of current assets (CA) and…

Q: I need answer

A: a. APV (Adjusted Present Value): This method values the project as if it were all-equity financed…

Q: . Like closed-end funds, ETFs can sell at a premium or discount to their net asset values. True or…

A: An ETF, or exchange-traded fund, is a type of investment vehicle that tracks a particular index,…

Q: Forecasted cash amount much lower than the normal level of cash can be adjusted by    investment…

A: Cash is the readiest form of liquid asset in the company. Forecasting cash balances by estimating…

Q: ndicate whether each statement is true or false. a) A naive hedge is the hedge of a cash asset on a…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: he firm has adequate cash to pay bills

A: The stakeholders of the entity evaluate the financials of the company in many possible ways.…

Q: Cash flows are discounted from the future to the present. O True False

A: Net present value means the difference between the present value of cash inflow and present value of…

Q: All things considered stable cash flows enable higher debt borrowing.

A: Cashflows: These are movement of the money from various sources like operations, investment…

Q: Liquidity means that the firm has Select one: a. Adequate cash. b. None of the options . c. Less…

A: Liquidity: It implies the ability or ease with which the company's assets can be translated into…

Q: The M.I.R.R. is based on   a Cash flows being reinvested at a rate always different from WACC  b…

A: Modified internal rate of return is an improvement on the internal rate of return method.

Q: Reinvestment risk occurs when a financial institution holds longer-term assets relative to…

A: Reinvesting means putting the profit back into the same scheme.

Q: The statement of cash flows reports the cash proceeds from issuing a bond as a cash flow from…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: In the discounted cashflow method, the discount rate is used for the following reasons EXCEPT a. it…

A: Discounted Cashflow Method: The discounted cash flow (DCF) approach is a method of valuation that is…

Q: True (t) or False (f) ______ Short-term, highly liquid investments may be included with cash on the…

A: Cash and cash equivalents include  Cash Commercial paper Treasury bills Short-term, highly liquid…

Q: disadvantages

A: Meaning of Discounted Cashflow Analysis Discounted cash flow (DCF) is a valuation method used to…

Q: why discounted cash flow methods are preferred to the more traditional techniques of payback and…

A: The term "discounted cash flow" (DCF) designates a technique for valuing investments that determines…

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.