Treasury stock B. Examples of cash equivalent a. c. Three-month time deposit Held for trading Appendix A of PFRS 9 provides that a financial asset is classified as held for trading when: a. Previous question Next question Get more help from Chegg. Examples of Cash In accounting, a company's cash includes the following: currency and coins checks received from customers but not yet deposited checking accounts petty cash Definition of Cash Equivalents Cash equivalents are short-term, highly liquid investments with a … The investment must be short term, usually with a … Definition: Cash and cash equivalents are highly liquid assets including coin, currency, and short-term investments that typically mature in 30-90 days. It should be at minimal risk of a change in value. What are Cash and Cash Equivalents? Cash and cash equivalents is a line item on the balance sheet, stating the amount of all cash or other assets that are readily convertible into cash. Cash equivalents are investments that can readily be converted into cash. A typical example of a cash equivalent is an investment in: Answer A. Cash flows are classified and presented into operating activities (either using the 'direct' or 'indirect' method), investing activities or financing activities, with the latter two categories generally presented on a gross basis. A cash equivalent is a highly liquid investment having a maturity of three months or less. The items in the cash flow statement are not all actual cash flows, but “reasons why cash flow is different from profit.” Depreciation expense Depreciation Expense Depreciation expense is used to reduce the value of plant, property, and equipment to match its use, and wear and tear, over time. b. Three-year BSP treasury bill purchased three months before date of maturity. What’s Not Included in Cash Equivalents. Three-month BSP treasury bill b. It is acquired principally for the purpose of selling it in the near term. Get 1:1 help now from expert Accounting tutors The above example of cash equivalents is taken from CFI’s Financial Modeling Courses. 3) A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n) A) preventive control. Cash Equivalent. 4) At a movie theater box office, all tickets are sequentially prenumbered. CCE is actually two different groups of very similar assets that are commonly … Common examples of cash equivalents include commercial paper, treasury bills, short term government bonds, marketable securities, and money market holdings. Cash and cash equivalents (CCE) are the most liquid current assets found on a business's balance sheet.Cash equivalents are short-term commitments "with temporarily idle cash and easily convertible into a known cash amount". Expert Answer . Investments in liquid securities, such as stocks, bonds, and derivatives, are not included in cash and equivalents. IAS 7 requires an entity to present a statement of cash flows as an integral part of its primary financial statements. Commercial paper C. Stock of other companies selling on an exchange D. All of the above. What are Cash and Cash Equivalents? Cash Equivalent . Examples of cash equivalents are: Bankers’ acceptances Certificates of deposit Commercial paper Marketable securities Money market An item should satisfy the following criteria to qualify for cash equivalent. Cash equivalents are investments that can be readily converted to cash. Any items falling within this definition are classified within the current assets category in the balance sheet. 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