How are cash equivalents treated on a statement of cash flows- They ar.docx
How are cash equivalents treated on a statement of cash flows? They are combined with the Cash account. They are disclosed in the operating activities section. They are disclosed in the investing activities section. They are disclosed in the financing activities section. Solution Letter A. This is because cash equivalents are treated also like cash. Remember the definition \"Cash-equivalents are short-term highly liquiid instruments that have 3 months or less maturity from the time it was obtained\". Sometimes, we present at the end of the statement of cash flows a reconciliation between the ending figure of the statement of cash flows (TOTAL CASH AND CASH EQUIVALENTS) and the cash and cash equivalents account from the balance sheet. .
How are cash equivalents treated on a statement of cash flows- They ar.docx
How are cash equivalents treated on a statement of cash flows? They are combined with the Cash account. They are disclosed in the operating activities section. They are disclosed in the investing activities section. They are disclosed in the financing activities section. Solution Letter A. This is because cash equivalents are treated also like cash. Remember the definition \"Cash-equivalents are short-term highly liquiid instruments that have 3 months or less maturity from the time it was obtained\". Sometimes, we present at the end of the statement of cash flows a reconciliation between the ending figure of the statement of cash flows (TOTAL CASH AND CASH EQUIVALENTS) and the cash and cash equivalents account from the balance sheet. .
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How are cash equivalents treated on a statement of cash flows- They ar.docx
- 1. How are cash equivalents treated on a statement of cash flows? They are combined with the Cash account. They are disclosed in the operating activities section. They are disclosed in the investing activities section. They are disclosed in the financing activities section. a. They are combined with the Cash account. b. They are disclosed in the operating activities section. c. They are disclosed in the investing activities section. d. They are disclosed in the financing activities section. Solution Letter A. This is because cash equivalents are treated also like cash. Remember the definition "Cash-equivalents are short-term highly liquiid instruments that have 3 months or less maturity from the time it was obtained". Sometimes, we present at the end of the statement of cash flows a reconciliation between the ending figure of the statement of cash flows (TOTAL CASH AND CASH EQUIVALENTS) and the cash and cash equivalents account from the balance sheet.