Which of these is a Part of cash in hand?
Correct answer: A. Postage stamps
- A. Postage stamps
- B. B/R
- C. Cheque Deposited with Bank
- D. B/R endorsed
Explanation
Postage stamps are treated as part of cash in hand in this traditional classification because they are readily usable for business payments. Bills receivable and endorsed bills are receivables, while a deposited cheque relates to cash at bank.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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