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      • Cash and cash equivalents are listed on a company's balance sheet, under current assets. They are listed at the top because they are very liquid or “current,” meaning they're available for use as cash “immediately,” or within 90 days.
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  1. May 31, 2024 · Financial instruments are defined as cash equivalents if they are highly liquid products that have active marketplaces, are without liquidation restrictions, and are easily convertible to cash.

  2. Aug 22, 2023 · Cash Equivalents and Marketable Securities. All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents and are combined and reported with Cash.

  3. Cash is often reported within the asset category called cash equivalents. Cash equivalents are short-term, highly liquid assets that can readily be converted into known amounts of cash and with little risk of price fluctuations.

  4. Jul 31, 2023 · Cash equivalents are part of the company's net working capital (current assets minus current liabilities), which it uses to pay invoices for operating expenses, buy inventory, cover...

  5. For an asset to be considered a cash equivalent, it must meet two key criteria: Highly liquid. The asset must be able to be converted very easily into cash. Short maturity period. The asset typically matures in three months or less.

  6. Cash and cash equivalents differ from other current assets, like marketable securities and accounts receivable, based on their nature. However, certain marketable securities may be classified as cash equivalents, depending on the accounting policy of a company.

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  8. Oct 6, 2024 · Cash equivalents are short-term investment securities that can be quickly converted into cash, making them essential components of a company’s current assets. They are characterized by high liquidity and low risk, often featuring solid credit quality.