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 ?
Interfund receivables and payables that arise from transactions and events involving cash or cash equivalents must be recognized;
Assets that normally convert to cash or cash equivalents (e.g., certificates of deposit, market able investments, and receivables resulting from cash loans) that arise from transactions and events involving cash or cash equivalents must be recognized;
The buyer's obligation to transfer replacement property may be secured by cash or cash equivalents if it is held in a qualified escrow account or trust.