Define cash equivalents.

Q: Cash vs. Cash Equivalence

A: Cash  Cash Equivalents  Cash is money in the form of currency. This includes all bills, coins, and…

Q: Explain the importance of cashflow statements.

A: Cash flow statement is one of the important financial statement that is being prepared by the…

Q: What is the purpose of the statement of cash flows?

A: The internal cash flows the business encounters is not accounted for in the income statement or the…

Q: How is IRR calculated with equal net cash inflows?

A:

Q: Which of the following method will be adopted to disclose Cash equivalents in the balance sheet? a.…

A: Historical cost method will be adopted to disclose Cash equivalents in the balance sheet....…

Q: What are the three primary categories of cash flows?

A:

Q: cash and cash equivalents include

A: Introduction: Cash is used to buy goods and services and to pay off debts. Items that do not qualify…

Q: Compare the various cash management alternatives.

A: Cash management can be described as the method of cash collection and cash handling. Evaluation of…

Q: Define cash flow hedges.

A: Derivatives:   Derivative is a product whose value is derived from underlying assets called base.…

Q: What is the difference between the sources (in nows) and uses (out nows) of cash?

A: The question is based on the concept of cash flow statement and cash flow analysis for a particular…

Q: Describe Structure of the Statement of Cash Flows.

A: Statement of cash flows:   This statement reports all the cash transactions which are responsible…

Q: Explain the term cash equivalents with examples.

A: Cash equivalents: Assets which are highly liquid in terms of quick payment and near to due date are…

Q: What are the discounted cash flow techniques?

A: Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based…

Q: Explain the term Cash Equivalency?

A: It is an evaluation procedure by which the cost of comparable properties selling at various funding…

Q: what are the operational aspects of the discounted cash flow (DCF) method?

A: What Is Discounted Cash Flow (DCF)?  Limited income (DCF) is a valuation technique used to assess…

Q: Define Restricted Cash.

A: Restricted cash refers to money that is held for a specific purpose and therefore not available to…

Q: how is liquidity determines in cash collection period

A: Liquidity refers to the ability of a company to meet its short-term obligations with cash or cash…

Q: What are the Examples of cash equivalents?

A: Cash & Cash equivalents: Cash is the money which is readily available in the form of currency.…

Q: Give some examples of Discounted cash flow?

A: Discounted cash flow: It's a time value method to calculate the project or investment value  using…

Q: Discuss the concept of cash equivalents? (short answer)

A: Cash Equivalent Cash and cash equivalent are highly liquid current Assets.  Cash is the liquid of…

Q: Briefly describe the cash cycle

A: The cash conversion cycle (CCC) is a metric that expresses the time (measured in days) it takes for…

Q: Write the three cases of cash flow equivalence?

A: Following are the three cases of cash flow equivalence: Single Payment Equivalence The equivalent…

Short-term Financing

Short-term financing occurs when a company finds an external funding source to run the business for a short period of time that takes less than a year to pay off. Working capital financing is another term for short-term financing. When a company's cash flow from operations is uneven, short-term financing is used to generate cash flow and cover operating expenses. Short-term finance is typically used by businesses to fund inventory, accounts receivable, and loans.