Important Points for IC 26 - Life Insurance Finance Exam
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Cash comprises cash on hand and demand deposit with Banks.
Cash equivalents are short terms deposits, highly liquid investment that are readily convertible into known amount of cash and which are subject to an insignificant risk of change in value.
Cash flows are inflows and outflows of cash and cash equivalents.
Operating activities are the principle revenue producing activities of the enterprise.
Investing activities are the acquisition and disposal of long term assets and other investments which are not included in cash equivalent.
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