cash and cash equivalents

Q: What are the considerations for recording and recognizing cash discounts received?

A: Cash discounts, also known as sales discounts or prompt payment discounts, are reductions in the…

Q: Describe reconciliation with change in cash balance.

A: A cash flow statement is used to reconcile with change in cash balance. It shows the cash flow in…

Q: compare cash fl ows from operating, investing, and fi nancing activities and classify cash fl…

A: The cash flow statement a statement which provides information of a company’s cash receipts and…

Q: The total cash receipts have to be put in the final part?

A: The cash receipts means the amount of money received either through cash mode or bank.

Q: Explain the term Cash Equivalency?

A: It is an evaluation procedure by which the cost of comparable properties selling at various funding…

Q: Example scenarios of commodity money, fiat money, representative money, fiduciary money and…

A: One of the important tools, in order to buy and sell the goods and services in the market, is known…

Q: Define Restricted Cash.

A: Restricted cash refers to money that is held for a specific purpose and therefore not available to…

Short-term Financing

Short-term financing occurs when a company finds an external funding source to run the business for a short period of time that takes less than a year to pay off. Working capital financing is another term for short-term financing. When a company's cash flow from operations is uneven, short-term financing is used to generate cash flow and cover operating expenses. Short-term finance is typically used by businesses to fund inventory, accounts receivable, and loans.