Financial and Managerial Accounting
Financial and Managerial Accounting
7th Edition
ISBN: 9781259726705
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 6, Problem 2QS
To determine

Cash and Cash Equivalents:

Cash and cash equivalents are part of liquid investments. It includes marketable securities, physical cash and commercial paper.

Liquidity:

A company paying off its short term obligations from its liquid assets or short term assets available to them is known as liquidity of a company. Liquidity shows the ability of a company to easily pay and for paying it can use the most liquid or readily available asset.

To Identify: Appropriate words for given statements.

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