A cash equivalent is something that can be turned into cash in a short period of time, but is not cash at the time of the disclosure of it's value. So, in order to make a balance sheet a more manageable size and to make it easier to read and interpret, cash and cash equivalents are usually consolidated and reported as one figure or as two. (Imagine looking at a 50 line balance sheet if every type of highy liquid investment was disclosed as a single line item.) As to why a company would own one.... If excess funds were available the company's management may find they can put their cash to better use by investing it in various financial instruments... that are not technically cash (hence cash equivalents).
yes, of course
GET PAID CASH FOR THE PURCHASES YOU MAKE AND THE DEALS YOU PROMOTE! cutt.ly/EjvGqAC
Yes. You will receive / provide no cash or cash-equivalents. You will get / provide some assets for the prepayments.
This is a great way to figure out how to keep track of your assets. You can find sample problems of this online.
nothing both r similarAlternate answer:The fund flow statement shows the sources and uses of working capital. Working capital equals current assets minus current liabilities (usually excluding the short term portion of interest bearing debt). The cash flow statement explains the change in cash (and cash equivalents), by showing the change in cash as a result of operating, investing and financing activities. The sum of these equal the change in cash over the period.An important difference is that working capital is broader than 'just' cash (and cash equivalents). For example, working capital can increase even though cash is decreasing (for example when the increase in inventory and accounts receivables is larger than the cash decline).Nowadays companies provide a cash flow statement.
yes, of course
The Cash Flow statement is essential because it shows how efficiently the company is spending its money, and where are they making money from. Cash equivalents are assets that can convert into cash within a short period of time. Short term investments (can go into operating, but more so in investing) and accounts receivables (operating) are good examples of cash equivalents because you are expected to receive money within the year. Ideally, you will want to see cash in accounts receivables within 30 days and ST investments within a few months. Neither of these are shown as cash equivalents in the 3 activities Cash equivalents will also be shown when finding the net change of "cash and cash equivalents".
GET PAID CASH FOR THE PURCHASES YOU MAKE AND THE DEALS YOU PROMOTE! cutt.ly/EjvGqAC
Debit Cash and cash equivalents. Credit Revenues or Sales.
Yes. You will receive / provide no cash or cash-equivalents. You will get / provide some assets for the prepayments.
this ratio assesses whether a company can pay its obligations using its cash. cash ratio is calculated using the following formula:Cash ratio = Cash and cash equivalents / Current liabilities
No; convert the cash into cash equivalents (like short-term CDs instead)
There are many credit card companies that offer cash advances but not as many cash advance companies that offer credit cards. Some of cash advance companies are Payday Loans and Advance America.
This is a great way to figure out how to keep track of your assets. You can find sample problems of this online.
No, cash + cash equivalents is the most liquid account. Liquidity is how quickly an asset can be converted to cash.
There are many companies that would purchase houses for cash. Some of these companies would include "Cash Home Buyers", "I Buy Houses" or "We Buy Houses".
Cash advance companies are legal, all requiring a business license to operate along with other requirements. Most states require cash advance companies to have a certain amout of cash in its holdings.