In other words, a cash equivalent is an asset that is so liquid that it can be considered cash for practical purposes. Stocks and other trading securities that can be easily sold on a public market are easily converted into cash that they can be considered cash for most financial reporting....
GAAP allows this financial statement presentation because some investments are so liquid and risk adverse that they are considered cash. Take T-bills for example. These investments are backed by the U.S. government and will always be paid. It’s not like a private short-term bond or loan wh...
When a statement of cash flow is prepared using the direct method, what are some of the operating cash flows? Give example. Explain the use of a worksheet in preparing a statement of cash flows. What criteria must be met for an item to be considered a cas...
7. Can I use an ATM with a credit card? Yes, you can use a credit card at an ATM to withdraw cash, but this is typically considered a cash advance and may incur high interest rates and fees.
Cash stuffing could help you avoid credit card debt but requires a lot of physical cash on hand. The cash envelope system is just one type of budgeting exercise that could help get your spending on track.Swipe, pay. Tap, pay. Insert chip, pay. Credit and bank cards make it easy to ge...
Logistics is not: An afterthought or something to be left to the last minute:logistics requires careful planning and execution. The supply chain:It is a part of the broader supply chain, which encompasses the entire network of activities involved in sourcing, production, and distribution. ...
What is the average outstanding balance? Recent data from theFederal Reserveshows that theaverage credit card balancein the U.S. increased from 2023 to 2024. Credit card balances are now at $1.14 trillion and increased by $27 billion during the second quarter. This is equivalent to a credit...
Short-term investments are cash equivalents that are considered liquid assets. Cash equivalent assets include stocks, bonds, savings accounts, and mutual funds. Prepaid Expenses Prepaid insurance is recorded as a current asset on the balance sheet. It's the term used to describe advance payments fo...
Liquidity:Cash equivalents must trade in liquid markets. That's because these investments must be very easy to convert to cash. If an investment is not liquid, it cannot be considered a cash equivalent. For example, a CD that doesn't allow for early redemption before thematurity dateis not ...
Cash management is actively monitoring cash inflows and outflows. It's a process that's important to individuals and businesses. Managing cash efficiently means the entity can keep money in its reserves, pay off its financial obligations, and invest for future development....