BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

Solutions

Chapter
Section
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
1 views

What are cash equivalents? How are cash equivalents reported on the statement of cash flows?

To determine

Introduction:

Cash flow statements are the statements that determine the inflow and outflow of cash. Cash equivalent are a part of cash flows which helps in determining the difference between opening cash and cash equivalent and closing cash and cash equivalents.

To state: The definition of cash and cash equivalents and where are they recorded in the cash flow statement.

Explanation

Definition:

Cash and cash equivalents are highly liquid short-term investment for that can be easily convertible into cash within the period of 3 months or less.

Cash includes:

Currency, petty cash, check-in-hand.

Cash equivalents includes:

marketable securities, treasury bills, commercial papers, etc.

Cash flow statement mainly consists of three activities and those are operating activities, investing activities, and financing activities. The sum of all these activities are added to the opening cash and cash equivalents at the end of the cash flow statements to find the balance of closing cash and cash equivalents...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 11 Solutions

Show all chapter solutions add

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Why do economists make assumptions?

Principles of Economics (MindTap Course List)

How do you translate business rules into data model components?

Database Systems: Design, Implementation, & Management

In what situation would a box-end wrench be chosen over an open-end wrench?

Precision Machining Technology (MindTap Course List)

Describe parasitic draw.

Automotive Technology: A Systems Approach (MindTap Course List)

Look up the mass of the following objects: a. recent model of an automobile of your choice b. the earth c. a fu...

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

What formula can a project manager use to estimate task duration? Provide an example.

Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)

Resolve the 360-lb force into components along the cables AB and AC. Use =60 and =40.

International Edition---engineering Mechanics: Statics, 4th Edition

Search Skills Map Search Search engines provide capabilities to search for maps, directions, and local attracti...

Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)