Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
1,762,366,990 visitors served.
forum mailing list For webmasters
?
New: Language forums
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

cash equivalent

   Also found in: Dictionary/thesaurus, Wikipedia 0.01 sec.
cash equivalent
1. An asset such as property or stock that has a realizable cash value equivalent to a specific sum of money.
2. An asset that is so easily and quickly convertible to cash that holding it is essentially equivalent to holding cash. A Treasury bill is a cash equivalent.

Cash Equivalent
An asset that can easily be changed into cash. Examples of cash equivalents include savings account, bonds (especially near their maturities), and money markets. Cash and cash equivalents represent a company's or individual's liquidity, which can be important for investors and banks. See also: M1, M2.

Cash equivalent. Short-term, low-risk investments, such as US Treasury bills or short-term certificates of deposit (CDs), are considered cash equivalents.

The Financial Accounting Standards Board (FASB) defines cash equivalents as highly liquid securities with maturities of less than three months. Liquid securities typically are those that can be sold easily with little or no loss of value.


cash equivalent

(1) In finance, assets easily converted to cash. Lenders like to see large percentages of assets held in cash and cash equivalents rather than tied up in real estate or stock in small corporations.(2) In appraisal,the conversion of a sales price with favorable or unfavorable financing terms into the equivalent price if the consideration had been all cash. A seller might demand an above-market price for a property but be willing to hold the financing at below-market rates, for example.Such a transaction would require analysis for the cash equivalent sales price.



How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
 
81% share in Spanish oil company Repsol YPF, or the cash equivalent.
When the food drive began in 1993, the hilltop church received fewer than 3,000 cans - or the cash equivalent of two cans per dollar raised.
Instead, they must either use the days or have the employer automatically contribute the cash equivalent to the retirement plan.
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2009 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.