are short term highly liquid investments (such as short-term debt securities) that readily convert to cash and that are subject t an insignificant change in value.
Comprise cash on hand and demand deposits together with any highly liquid investments readily convertible to known amounts of cash.
Assets that are readily convertible to cash, such as accounts receivable, short-term commercial paper and short-term bonds and notes issued by municipalities and corporations.
Cash and cash equivalents at the end of a period, is not the cash balance at the end of the year. It is the sum of cash generated by the company from operations, financing and investing activities. It is an indicator of how much cash the company generates and also as a result how cash rich the company is.
It refers to the amount of money that a company has sitting in the bank. It may also include marketable securities, such as government bonds. Cash equivalents on the balance sheet may include securities that mature within 90 days.
A balance sheet heading or grouping that includes both cash and those marketable assets that are very close to their maturity dates. To Top
Cash and cash equivalents are the most liquid asset found within the asset portion of a company's balance sheet. Cash "equivalents" are typically composed of assets that are readily convertible into cash such as money market accounts, short-term government bonds and commercial paper.
