BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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9 days
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10 days
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11 days
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12 days
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Detailed explanation-1: -Cash and Cash Equivalents are entered as current assets on a company’s balance sheet. The total value of cash and cash equivalents is calculated by adding together the total of all cash accounts and any highly liquid investments that can be easily converted into cash that qualify as a cash equivalent.
Detailed explanation-2: -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 include bank accounts and marketable securities such as commercial paper and short-term government bonds.
Detailed explanation-3: -Examples of Cash Equivalents Accounts Receivable DO NOT fall under the category of Cash Equivalents.