Which Statement Is Not Correct

question 4

Multiple Choice

Which statement is not correct?

• A)Cash is an idle asset for a business.
• B)Bank overdrafts cannot be considered cash equivalents.
• C)Cash equivalents are readily convertible to cash.
• D)Cash and cash equivalents is reconciled in the cash flow statement.

---

Definitions:

Incremental Time Period

A specific duration over which the additional effects of decisions or changes are measured.

Cash Budget

A forecast that estimates the cash inflows and outflows over a specific period, helping to manage liquidity and financial planning.

Cash Receipts

Cash Receipts refer to the collection of money, including coins, currency, checks, and electronic transfers, received by a business from transactions.

Factors of Production

The inputs used in the production of goods or services, typically including land, labor, capital, and entrepreneurship.