What is "investment cash" compared with "current assets
cash"?
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Answer / guest
It depends on the intention of cash holding. It is a
current asset if the intention is to spend it within the
next accounting period. It is investment cash where it is
intended to invest cash within the next accounting period
i.e. it is held as part of the investment portfolio. It is
not necessary to reclassify cash at the end of each period
depending on whether it is intended to withdraw it or not.
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / rathi
investment cash holds short term and long term.in short
term current assets cash is considered bcoz cash wil be
back within a year but in long term investment cash is
unpredictable
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