Cash and Cash Equivalents
{"Image DocumentName": "Cash and Cash Equivalents", "Image ImageDescription": "Short-term, highly liquid investments. Readily converted into cash, with little or no risk of loss. Examples: money market funds Treasury bills. Maturity date must not be longer than 3 months from date of purchase. Resources immediately available to pay obligations. Skilled cash mangers invest temporarily idle cash in short-term investments to earn interest on those funds, rather than maintain an unnecessarily large balance in a checking account. The FASB views short-term highly liquid investments that can be readily converted to cash, with little or no risk of loss, as cash equivalents. On the statement of cash flows, there is no differentiation between amounts held as cash and amounts held in cash equivalent investments. Examples of cash equivalents are money market funds, Treasury bills, and commercial paper. To be classified as cash equivalents, these investments must have a maturity date not longer than three months from the date of purchase. Each firm\u2019 must establish a policy regarding which short-term highly liquid investments it classifies as cash equivalents and the policy should be disclosed in the notes to the financial statements.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}