Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 14 - Statement of Cash Flows - Questions - Page 658: 14-2

Answer

Cash equivalents are short-term, highly liquid investments such as treasury bills, commercial paper, and money market funds, that are made solely for the purpose of generating a return on temporarily idle funds. Because such assets are equivalent to cash, they are included with cash in a statement of cash flows.

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