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May 31, 2024 · What Are Cash and Cash Equivalents (CCE)? Cash and cash equivalents are a line item on the balance sheet that reports the value of a company's assets that are cash or can be converted...
Items commonly considered cash equivalents include short-term treasury bills, commercial paper, and money market funds.
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.
Jul 31, 2023 · Cash equivalents include U.S. government Treasury bills, bank certificates of deposit, bankers' acceptances, corporate commercial paper, and other money market instruments. These...
In the business finance world, the money in your company bank accounts is considered cash, as is the actual cash you have on hand, such as petty cash for small daily expenses or currency (both banknotes and coins) you may be holding for whatever reason. So, what’s a cash equivalent?
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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What is an example of a cash equivalent?
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Can a liquid instrument be considered a cash equivalent?
Money order is a financial instrument issued by government or financial institutions which is used by payee to receive cash on demand. The advantage of money orders over checks is that it is more trusted since it is always prepaid.
