Cash and cash in bank deposits are referred to as what?

• A. Capital
• B. Trade receivables
• C. Cash positions
• D. Accounts payable

Answer: (C)

Cash resources are the most liquid assets a business owns—the money you can use right away. Cash on hand and cash in bank deposits together show how much cash is readily available, i.e., the company’s cash position at a given moment. That’s why describing them as cash positions fits best: it highlights the current amount of cash the business can access immediately.

The other ideas point to different things: capital refers to funds invested or used to generate returns, trade receivables are amounts owed by customers, and accounts payable are amounts the company owes to suppliers.