11. cash equivalent is:Short-term investmentShort-term investment that is readily convertible to cashShort-term investment that is readily convertible to cash and so near their maturityShort-term investment that is readily convertible to cash and/or so near their maturity

Answered: -cash equivalent is:

Business

Accounting

-cash equivalent is:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 11MC: The NPV method assumes that cash inflows associated with a particular investment occur when? A. only...

See similar textbooks

Related questions

Q: What are cash equivalents, and why are they included with cash on a statement of cash flows?

A: Cash equivalents refers to financial instruments which can be converted into cash immediately or to…

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

Q: h flows meani

A: The amount of cash and the cash equivalent that the company receives or gives by the way of payment…

Q: What may be included under the heading of “cash”?

A: Current assets: Current assets are those assets owned by the company that can be convertible into…

Q: What are normal and nonnormal cash flows?

A: Answer: Normal cash flows projects are those in which one or two cash outflows occur at the outset…

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: The total cash receipts have to be put in the final part?

A: The cash receipts means the amount of money received either through cash mode or bank.

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: Why are cash equivalents included with cash in a statement of cash flows?

A: Cash equivalents: Instead of keeping idle cash during high interest rates, the companies invest cash…

Q: How to calculate a cash flow ?

A: Cash flow means the movement of money or cash and its equivalents. It is the amount of cash…

Q: What are free cash flows?

A: Companies always estimate cash flows to know the financial conditions of the company because it is a…

Q: Define Restricted Cash.

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

Q: Given the following, what is free cash flow?

A: The free cash flow is calculated by deducting the capital expenditure from the cash flow from…

Q: The assets that can be converted into cash within a short period are known as?

A: Assets: In financial accounting, an asset is any resource owned by a business or an economic entity.…

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: What is Calculation of Net Cash Flow? Please provide example.

A: Net Cash Flow: It is the total amount of money created or lost over a particular timeframe, normally…

Q: Using an example, compare and contrast physical delivery and cash settlement?

A: The two most prevalent stock derivatives traded on a stock market are futures and options. These are…

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…

Q: How can we separate cash flows from operating cash flow?

Q: Calculate cash flows with indirect method.

A: Income reported = $ 300000 Decreases in Accounts Receivable = $14500 Increase in accounts payable =…

Q: What is a common cash flow transaction/Give an example?

A: Cash flows are mainly of three types: 1. Operating 2. Investing and 3. Financing Cash flows from…

Q: 1. Define cash.

A: Hi student Since there are multiple questions, we will answer only first question. Cash is very…

Q: Site an examples of cash equivalent and discuss each how it became cash equivalents.

A: Cash Equivalents: Cash equivalents are investment assets or securities with a high credit quality…

Q: what total amount should be reported as cash and cash equivalents?

A: Cash and cash equivalents is an important part of assets of the business. It means assets which are…

Q: What are the three common natures of the cash flows?

A: Cash Flow Statement is a fundamental financial statement that renders valuable information regarding…

Q: Calculate cash flows.

A: Net operating cash flows are the amount which is generated by the company in cash after charging for…

Q: 3. What are some other potential cash inflowsbesides collections?

A: Cash inflow means that money goes into a company. Sales, investment, or funding may be. It's the…

Q: What is the Relevant cash-now information?

A: Relevant cash- flow refer to after-tax gradual cash-flow anticipated from a proposed procurement or…

Q: Describe cash equivalents

A: Cash equivalent means that amount which can be easily convertible into cash with any loss of value.…

Q: What is meant by ‘Cash Flows’ ?

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: umespect Lu the sldlement of cash flows

A: Answer: Option 2

Q: Give an example of the Cash-Flow Approach?

A: A cash flow hedge is defined as the transaction done to offset the risks from the variability of the…

Q: Differentiate between cash inflows and cash outflows?

A: Cash flows refer to the movements of cash into and out of a business, commonly categorized as…

Q: Define Cashbook and also explain their types.

A: Cash book is a form of record keeping book which shows all cash receipts and cash payments of the…

Q: What is The Cash-Flow Statement? Give an example?

A: A statement that helps in providing detailed information regarding the cash inflow as well as the…

Q: Why must we convert cash flows to a common basis?

A: In creating a cash flow statements, it is important to translate accumulated net profits to a cash…

Q: attemntine determine the nount of cash and

A: Solution: Calculation of cash balance $ 1 Commercial savings account 6,00,000 1 Commercial…

Q: Define the term Equivalent Cash Value?

A: Cash: Cash is the money that is readily available in the form of currency. Since cash can be easily…

Q: Define cash equivalents.

A: Cash equivalents are also known as cash and cash equivalents. These have low risk and low return…

Q: What is cash equivalent

A: Cash equivalent is the most liquid form of current asset that is shown in the balance sheet of the…

Q: Describe the cash flow approach?

A: Cash flow referred as the net value of cash and cash equivalent transferred as in and out of…

Q: Define cash conversion cycle

A: CCC is an abbreviation used for Cash Conversion Cycle which is computed by using various activity…

Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

11. cash equivalent is:
Short-term investment
Short-term investment that is readily convertible to cash
Short-term investment that is readily convertible to cash and so near their maturity
Short-term investment that is readily convertible to cash and/or so near their maturity

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Cash and cash equivalents

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

,Match the following terms with the appropriate definition.Effective yield or interest rateMonetary liabilityCompound interestPresent ValueFuture value of a single amountA.Fixed obligation to pay an amount in cash.B.The rate at which money will actually grow.C.Interest accumulates on interest.D.Current worth of future cash flows.E.The money to which an amount invested will grow over time.
3. Cash equivalents are a. Short-term and highly liquid investments that are readily convertible into cash b. Short-term and highly liquid investments that are readily convertible into cash with remaining maturity of three months c. Short-term and highly liquid investments that are readily convertible into cash with remaining maturity of three months d. Short-term and highly liquid marketable equity securities
statements are true of long-term investments? They can be considered cash equivalents.
What is the maturity period required for an investment to qualify under the definitions of a cash equivalent?
Cash equivalents are defined as 'short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value'. IAS 7 does not define 'short-term'. What is the normal interpretation of 'short term' in this context? a- An item with significant risk of changes in value and the purpose of meeting current cash commitments b- An initial maturity of more than three months which can subsequently reduce to less than three months c- A short maturity of three-months or less d- All of them
The NPV method assumes that cash inflows associated with a particular investment occur when? A. only at the time of the initial Investment B. only at the end of the year C. only at the beginning of the year D. at any of these times
16. Making Capital Investment Decisions. Explain the use of real and nominal discount rates in discounting cash flows. Which is used more often and why? (
True (t) or False (f) ______ Short-term, highly liquid investments may be included with cash on the balance sheet.
The contract value of a GIC is __________; the fair value of a GIC is __________. Select one: a. the present value of future cash flows; the future value of future cash flows b. its cost; the present value of future cash flows c. the future value of future cash flows; the present value of future cash flows d. its cost; the future value of future cash flows
13 How to calculate the value range using the discounted cash flow (DCF) approach?
Discounting an investment’s cash flows using the internal rate of return will result in which of the following? Group of answer choices net present value of one net present value of zero positive net present value negative net present value
Which figure of merit provides an interest rate at which the present value of the future cash flows equals the amount invested? a) NPV b) IRR c) Cap Rate d) DCF Please ensure accuracy and explain your choice