cash equivalent


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Related to cash equivalent: Treasury bills

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

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.

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.

References in periodicals archive ?
As originally conceived, the statement of cash flows was intended to explain the change in the amounts at the beginning and end of the period titled "cash" or "cash and cash equivalents" in the statements.
In some cases a true market valuation provided by an independent actuary can be as much as 50% higher than the cash equivalent transfer value provided by the pension scheme.
According to the company, the Cash Equivalent Credits may be used in combination with cash to obtain, if and when available, on a best efforts basis, certain goods and services used in the daily ongoing business of ICOA, as well as provide the potential to satisfy certain other obligations of the company from time to time.
However, Mr Brain's team have calculated that forces are likely to lose a further pounds 286 million - the yearly cash equivalent of another 14,000 probationary officer salaries - in a process dubbed equalisation."
However, instead of a package of support being put together for them by the local authority they could receive the cash equivalent.
The IRS should reconsider the conclusion that any gift certificate is a cash equivalent fringe benefit and, instead, look to the value and frequency with which that benefit is provided to determine if it is de minimis.
By selling the inventory at full value, but taking cash equivalent credits, the sellers avoid large losses and are able to book the sale profitably and receive full value.
Katz, The Cash Equivalent of In-Kind Income (Stamford, CT, Cooper and Co., 1977); Smeeding, "Alternative Methods"; and Bureau of the Census, Proceedings.
It also maintained a greater proportion of its investments in lower yielding cash equivalent investments during the second quarter of 2018, which negatively impacted the weighted average yield of the investment portfolio.
31, 2016, the state hospital had a total ofP1.865 billion "cash and cash equivalent" that remains intact P1.03 billion of which is under "special high yield savings deposits" P833.234 million under "cash on hand and in banks," and P2.084 million under "time deposits." In its financial statement incorporated in the COA report, the PCMC said part of its remaining P1.865 billion "cash and cash equivalent" is the amount of P1.15 billion recorded under the item "Due to Other Funds-DOH.
But it said it continued to be "soundly financed and cash generative" with cash or cash equivalent levels of pounds 27.3m.
As long as the employee's contractual rights cannot be assigned, such rights will not be considered a cash equivalent and will not be currently includable in income.