ICANFinancial AccountingStatement of Cash Flows2020

In accordance with IAS 7, which of the following items is EXCLUDED from cash and cash equivalents in the statement of cash flows?

AA 60-day treasury bill purchased when 55 days remained to maturity
BAn overnight call deposit with a commercial bank repayable on demand
CA bank overdraft repayable on demand that forms an integral part of the entity's cash management
DAn equity investment in quoted shares held for short-term price appreciationCORRECT
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Why the answer is D, and why the others tempt you.
IAS 7 paragraph 7 defines cash equivalents as short-term, highly liquid investments readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Equity investments are excluded because their value is subject to significant price risk. The 60-day treasury bill qualifies (original maturity of three months or less is the benchmark, and 55 days remaining at purchase date satisfies this); the call deposit and qualifying overdraft are included under IAS 7 paragraphs 6 and 8 respectively.
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