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Short term investments are not considered while preparing cash flow statement. Why? (C.B.S.E. 2017)

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

Short term investments are considered as Cash & Cash Equivalent. Hence, they do not affect cash flows and therefore not considered while preparing cash flow statement.


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Previous PostWhy is separate disclosure of cash flow from investing activities important while preparing Cash Flow Statement? (C.B.S.E. 2016)
Next PostNet increase in working capital other than cash and cash equivalents will increase, decrease or not change cash flow from operating activities. Give reason in support of your answer. (C.B.S.E. 2017)

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