Question: What is a cash equivalent? Why is it included with cash for purposes of preparing a statement of cash flows?

What is a cash equivalent? Why is it included with cash for purposes of preparing a statement of cash flows?

Step by Step Solution

★★★★★

3.38 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A cash equivalent is an item that is readily convertible to a known amount of cash and has a... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

79-B-M-A-S-C-F (531).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Q:

What is a cash equivalent? Why is it included with cash on the balance sheet?

Q:

What is a cash equivalent? How does a cash equivalent affect the reporting of income?

Q:

What is a cash budget? How does the treasurer use forecasts of cash surpluses and cash deficits?

Q:

What is a cash equivalent? Why is it included with cash for purposes of preparing a statement of cash flows? (LO-1)

Q:

What is a cash equivalent? Why is it included with cash for purposes of preparing a statement of cash fl ows? AppendixLO1

Q:

Use the following legend to indicate how each transaction would be reported on the statement of cash flows. (Assume that the stocks and bonds of other companies are classified as long-term...

Q:

7. EX.12.20 Classification of Activities Select how each transaction would be reported on the statement of cash flows. (Assume that the stocks and bonds of other companies are classified as long-term...

Q:

The following transactions occurred for a company during the year. a. Purchased a 6-month certificate of deposit b. Purchased a 90-day Treasury bill c. Issued 10,000 shares of common stock d....

Q:

Exercise 16-5 Indirect: Cash flows from operating activities LO P2 Fitz Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Accounts...

Q:

Indicate whether each of the following items should be considered 'cash,' 'cash equivalent, or 'not cash' for the purpose of preparing the statement of cash flows. a) Six month Guaranteed Investment...

Q:

Based on the most recent competitive threats, what do you predict for Nokia in the coming years? What brand of cell phone do you own? If youre living in the United States, chances are it isnt a...

Q:

Hinton Exploration Company reported pretax financial income of $621,000 for the calendar year 2011. Included in the Other Income section of the income statement was $98,000 of interest revenue from...

Q:

When a small change in sales results in a large change in operating income, one possible reason is that the firm is employing a relatively high degree of operating leverage.

Q:

Mr. M has been employed as an engineer by A Ltd., a company incorporated in Hong Kong. During the year ended 31 March 2019, Mr. M had the following income and expenditure. A monthly salary of...

Q:

3. Alpha Investors On July 1, 1985, Jim Roberts felt certain the stock market was in for a correction. The S&P 500 Index had risen 14% since the first of the year, and most analysts were predicting...

Q:

Example of Epic Proportions Twenty-five years ago Ronaldo, an accomplished cyclist, purchased a small custom carbon fiber wheel builder Zircles Inc. He applied their expertise in carbon fiber to...

Q:

Let us consider the a small village. The power network of the village is shown in Figure 1. Load demands at Zone A, Zone B and Zone C, are 5MVA (0.95pf lagging), 7MVA (0.94pf lagging) and 7MVA...

Q:

Read all steps in the audit program for cash found on Work Paper 16-1 and familiarize yourself with work papers 16-1 through 16-7. Complete steps 2, 3, 5, 9, 10, and 12. Be sure to document your work...

Q:

True or False? The cash flows of an annuity due occur at the beginning of each period.

Q:

Projected Results to Meet Corporate Objectives Grout Inc. is a wholly owned subsidiary of Slait Co. The philosophy of Slaits management is to allow the subsidiaries to operate as independent units....

Q:

Basic Financial Ratios The accounting staff of SST Enterprises has completed the financial statements for the 2008 calendar year. The statement of income for the current year and the comparative...

Q:

Goals for Sales and Income Growth Sunset Corp. is a major regional retailer. The chief executive officer (CEO) is concerned with the slow growth both of sales and of net income and the subsequent...

Q:

All money market instruments are long-term securities. True False Question 8 Investors in CMO securities are not exposed to prepayment risk. True False

Q:

(Compound annuity) What is the accumulated sum of each of the following streams of payments? a. $480 a year for 8 years compounded annually at 9 percent. b. $100 a year for 6 years compounded...

Q:

(Future value) Giancarlo Stanton hit 57 home runs in 2017. If his home-run output grew at a rate of 13 percent per year, what would it have been over the following 5 years