
Concept explainers
(a)
Introduction:
Cash and cash equivalentsare the items that are recorded in the
The way cash equivalents are reported in financial statements.
(b)
Introduction:
Cash and cash equivalentsare the items that are recorded in the balance sheet of the company which shows the company's assets in the form of cash or are easily converting to cash. The company usually makes investments which have nature like cash so that they can earn interest on these investments and they can be liquidated easily.
To state:
Someexamples of cash equivalents.

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