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    • Highly liquid assets

      • Cash equivalents are highly liquid assets as they can be readily converted into cash within a short period.
      www.larksuite.com/en_us/topics/accounting-glossary/cash-equivalents
  1. May 31, 2024 · Cash and cash equivalents are a group of assets owned by a company. For simplicity, the total value of cash on hand includes items with a similar nature to cash. If a company has cash or cash...

  2. 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.

  3. 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]

  4. To be considered a cash equivalent, it needs to be highly liquid, redeemable upon demand, or able to be quickly converted into cash. Investments in longer-term liquid securities, like stocks or bonds, are not considered cash equivalents, even though they may be easily convertible into cash.

  5. Jun 24, 2024 · Cash equivalents refer to highly liquid investments that are readily convertible into cash and have a short maturity period. In the field of accounting, cash equivalents are classified as assets that are held by a company and can be used to meet short-term cash requirements.

  6. Cash equivalents are investment instruments with high credit quality and high liquidity that are designed for short-term investing. Along with stocks and bonds, cash equivalents, sometimes known as "cash and equivalents," are one of the three primary asset types in financial investing.

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  8. 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.