Cash and Cash Equivalents Cash and Cash equivalents are current assets that form part of the balance sheets and represent the liquid assets of the business. Liquid assets are assets that are readily convertible to cash. Cash and Cash Equivalents comprise of Cash and Bank Balances, Short term investments, Treasury Bills etc. Current Assets are assets that are convertible to cash in a period of one year or less. The cash flow statements explain the change in cash and cash equivalents of the business for the reporting period by tracking the changes in cash flows from Operating Activities, Investing Activities and Financing Activities for the reporting period. To Determine: Compare Cash and Cash equivalents with Current Assets as at December 31, 2013 well as with corresponding amounts with December 31, 2012.

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Chapter 8, Problem 12DQ

To determine

Introduction:

Cash and Cash Equivalents

Cash and Cash equivalents are current assets that form part of the balance sheets and represent the liquid assets of the business. Liquid assets are assets that are readily convertible to cash.

Cash and Cash Equivalents comprise of Cash and Bank Balances, Short term investments, Treasury Bills etc. Current Assets are assets that are convertible to cash in a period of one year or less.

The cash flow statements explain the change in cash and cash equivalents of the business for the reporting period by tracking the changes in cash flows from Operating Activities, Investing Activities and Financing Activities for the reporting period.

To Determine:

Compare Cash and Cash equivalents with Current Assets as at December 31, 2013 well as with corresponding amounts with December 31, 2012.

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