Bezique's cash position at 30 June 2025 was what amount?

• A. £1.7 million
• B. £1.4 million
• C. £2.0 million
• D. £1.9 million

Answer: (A)

Cash position is the amount of liquid resources available at a specific date. It represents cash and cash equivalents shown on the balance sheet and includes cash in hand, cash at bank, and other very short-term, highly liquid investments that are readily convertible to known amounts of cash. Bank overdrafts, if they exist and are part of the same financing arrangement, are treated as a deduction from that liquid pool when calculating net cash.

To determine Bezique’s cash position at 30 June 2025, you look at the ending balance of cash and cash equivalents reported for that date. In this scenario, the ending balance is £1.7 million, which reflects the actual liquid resources Bezique could access immediately on that date.

Other options would imply either including funds that aren’t readily available (like longer-term investments or restricted cash) or omitting part of what should be considered cash and cash equivalents, so they wouldn’t align with the balance sheet’s reported cash figure.