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  1. May 31, 2024 · Financial instruments are defined as cash equivalents if they are highly liquid products that have active marketplaces, are without liquidation restrictions, and are easily convertible to cash.

  2. The beginning and ending balance of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents shown on the statement of cash flows should agree to the sum of the amounts on the balance sheet.

  3. The first two are considered cash, while the remaining five would fall into the cash equivalent bucket: Cash on hand. Physical currency is kept on-site for immediate use like an office’s petty cash supply or a cash float kept in a register at a physical store.

  4. Examples of cash equivalents include bank certificates of deposit, bankers 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.

  5. 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. 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 financial...

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  8. Cash equivalents are investment instruments with high credit quality and high liquidity. They are designed for short-term investing. Cash and cash equivalents on hand are indicative of a company's financial health. Analysts use them to determine whether a company is a solid investment or not.