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Current assets
- Cash and cash equivalents are recorded as current assets (CCE) are the most liquid current assets found on a business's balance sheet.
en.wikipedia.org/wiki/Cash_and_cash_equivalents
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 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.
Jul 31, 2023 · Cash equivalents are highly liquid investment securities that can be converted to cash easily and are found on a company's balance sheet.
Cash and cash equivalents are recorded as current assets (CCE) are the most liquid current assets found on a business's balance sheet. Cash equivalents are short-term commitments "with temporarily idle cash and easily convertible into a known cash amount". [1]
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 ...
Aug 22, 2023 · 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. An example of a short-term cash equivalent asset would be one that matures in three months or less from the acquisition date.
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Cash equivalents are highly liquid. Marketable securities are fairly liquid, but not as liquid as cash equivalents because selling stocks and other marketable securities in a hurry may adversely affect the price (imagine taking money out of savings to pay for an emergency expense like a broken tooth versus trying to sell your car).
