Asked by
Gustavo Beltranena
on Oct 10, 2024
Verified
Cash equivalents on the statement of cash flows consist of any investment that can be converted into cash within one year.
Cash Equivalents
Short-term, highly liquid investments such as Treasury bills, commercial paper, and money market funds, that are made solely for the purpose of generating a return on temporarily idle funds.
Cash Flows
The total amount of money being transferred into and out of a business, especially as affecting liquidity.
- Educate yourself on the components and classifications encapsulated in the statement of cash flows.
- Understand the concept of cash equivalents and their relevance to the statement of cash flows.
Verified Answer
CH
Learning Objectives
- Educate yourself on the components and classifications encapsulated in the statement of cash flows.
- Understand the concept of cash equivalents and their relevance to the statement of cash flows.
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