Cash and Cash Equivalents


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Cash and Cash Equivalents

Balance sheet items that represent either physical currency printed on notes or assets that can easily be changed into that. Examples of cash equivalents include savings accounts, 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.
References in periodicals archive ?
NET INCREASE IN CASH AND CASH EQUIVALENTS 6,256 16,449
The statement should reconcile beginning and ending cash and cash equivalents, which means cash balances on the cash flow statement should relate to the amounts reported on the balance sheet.