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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 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. An example of a short- term cash equivalent asset would be one that matures in three months or less from the ...

  3. For example, if your company has money market funds (such as stock in another company) that are easily converted into cash, this would be considered a cash equivalent. 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.

  4. 6.5.3.4 Balance sheet presentation of restricted cash and restricted cash equivalents. Restricted cash and restricted cash equivalents are usually presented separately on the face of the balance sheet, or within other assets or similar line items. S-X 5-02 (1) requires separate disclosure of the cash and cash items that are restricted as to ...

  5. Aug 22, 2023 · 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. An example of a short-term cash equivalent asset would be one that matures in three months or less from the acquisition date.

  6. Cash and cash equivalents are considered to be highly liquid assets, meaning they can be easily and quickly converted into cash without significant loss of value. As such, they are typically reported at their fair market value and are included in the calculation of a company's working capital, which is an important measure of a company's short-term financial health.

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  8. 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 ...

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