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Chapter 3 Cash And Cash Equivalent Cash Learning Objectives 1. Establish and account for a Change Fund. 2. Establish and account for a Petty Cash Fund. 3. Describe the use of commercial banking services

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What is cash and cash equivalent?

Cash and cash equivalents are assets that are readily convertible into cash such as currency, checks, and short-term investments with maturities of three months or less.

Who is required to file cash and cash equivalent?

Companies and individuals who have cash and cash equivalents in their possession are required to report them in their financial statements or tax returns.

How to fill out cash and cash equivalent?

Cash and cash equivalents can be reported on a balance sheet or financial statement as a current asset. Detailed information on the types and amounts of cash and cash equivalents must be provided.

What is the purpose of cash and cash equivalent?

The purpose of cash and cash equivalents is to provide liquidity and financial flexibility to an individual or company. They can be used for immediate expenses or investments.

What information must be reported on cash and cash equivalent?

The total amount of cash, checks, and short-term investments must be reported on cash and cash equivalents. Any restrictions or limitations on the use of these assets should also be disclosed.

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