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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.

  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. Oct 6, 2024 · Liquidity: Cash equivalents are assets that can be quickly converted to cash without significant loss in value. Short-term: These investments typically have short maturities, often less than three months, ensuring quick access to funds.

  4. Oct 4, 2024 · In addition to liquidity and security, cash equivalents must be readily marketable, meaning they can be sold or converted into cash quickly without significant loss. Money market funds, which pool together short-term, high-quality investments, are another example.

  5. 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, redeemable upon demand, or able to be quickly converted into cash.

  6. May 25, 2024 · Liquidity refers to the ease with which an asset can be converted into cash without affecting its market price. Cash equivalents, such as Treasury bills and commercial paper, are traded in highly active markets, ensuring that they can be sold rapidly and with minimal price fluctuation.

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  8. 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]