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  1. May 31, 2024 · Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately. Cash equivalents ...

  2. Cash equivalents are low-risk, short-term investments with original maturity periods of three months or less. Examples of cash equivalents include bank certificates of deposit, banker’s acceptances, Treasury bills, commercial paper, and other money-market instruments. To be considered a cash equivalent, it needs to be highly liquid ...

  3. Jul 31, 2023 · The total for cash and cash equivalents is always shown on the top line of a company balance sheet because these current assets are the most liquid assets. Stocks, bonds, and cash equivalents make ...

  4. 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. Assets like treasury bills, commercial paper, and some Certificates of Deposits (CDs) are considered cash ...

  5. Cash is the most liquid of the financial assets and is the standard medium of exchange for most business transactions. Cash meets the definition of a monetary, financial asset. Cash is usually classified as a current asset and includes unrestricted : Coins and currency, including petty cash funds. Bank accounts funds and deposits.

  6. Oct 14, 2024 · Liquid assets are perceived as being essentially identical to cash because they don't lose value when they're sold. A cash equivalent is an investment with a short-term maturity such as stocks ...

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  8. Aug 22, 2023 · Office supplies inventory (current asset) Postage on hand. Bank indebtedness (current liability) Bank overdraft accounts not offset by same bank positive balances. 6.2: Cash and Cash Equivalents is shared under a not declared license and was authored, remixed, and/or curated by LibreTexts.