Cash and cash equivalents : Cash is the money readily available in the form of currency. Cash equivalents are the near-cash items, which are readily convertible into cash. Cash equivalents have a maturity period of three months, or less than 3 months. Cash and cash equivalents are reported in the Current assert section of the balance sheet. Examples of cash equivalents Certificates of deposit U.S. government securities Corporate notes and bonds Commercial paper Days’ cash on hand for A and N.

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Chapter 7, Problem 7.1ADM

To determine

Cash and cash equivalents: Cash is the money readily available in the form of currency. Cash equivalents are the near-cash items, which are readily convertible into cash. Cash equivalents have a maturity period of three months, or less than 3 months. Cash and cash equivalents are reported in the Current assert section of the balance sheet.

Examples of cash equivalents

Certificates of deposit

U.S. government securities

Corporate notes and bonds

Commercial paper

Days’ cash on hand for A and N.

(b)

To determine

To interpret: The results.

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