Which one of the following items would not be considered cash? Group of answer choices Postdated cheques Coins Money orders Currency
Question
Which one of the following items would not be considered cash?
- Postdated cheques
- Coins
- Money orders
- Currency
Solution
Breakdown of the Problem
We need to determine which item among the listed choices is not considered cash. To do this, we will analyze the definition and characteristics of cash and each of the items provided.
Relevant Concepts
- Cash Definition: Cash generally refers to physical money (currency and coins) as well as other forms of liquid assets that can be quickly converted to cash without significant loss of value.
- Characteristics of Cash:
- Must be generally accepted
- Must be liquid
- Must not have restrictions on its availability or redemption
Analysis and Detail
- Postdated Cheques: These are cheques that are written for a future date. They cannot be cashed until that date, so they do not qualify as cash because they represent a promise to pay, contingent on that future date.
- Coins: These are physical forms of currency and are considered cash.
- Money Orders: These are prepaid forms of payment that can be used like cash but are technically not physical cash; they are negotiable instruments.
- Currency: This includes paper money and is the primary form of cash.
Verify and Summarize
Among the choices given, postdated cheques stand out as the item that cannot be used as cash until the date specified. Coins and currency are direct forms of cash, and money orders, while not cash, can still be used for transactions similar to cash.
Final Answer
Postdated cheques would not be considered cash.
Similar Questions
Which one of the following items would not be considered cash? Group of answer choices Postdated cheques Coins Money orders Currency
Which of the following would you NOT expect to see on a balance sheet?Group of answer choicesLiabilitiesCapitalExpensesCash
Which of the following is the instruments of Money market?Answer choicesSelect only one optionREVISITSharesDebenturesTreasury BillsDerivatives
Which of these is not an income type item?Group of answer choicesRoyalties receivedCommission receivedFees receivedAccounts receivable
Which of the following is NOT an element of working capital?Group of answer choicesRetained earningsAccounts receivableCashInterest payable
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.