Asked by Marisa Mckay on Jun 29, 2024
Verified
Investments that do not normally change in value are disclosed on the balance sheet as cash and cash equivalents.
Cash Equivalents
Short-term, highly liquid investments that are easily convertible to a known amount of cash and close to their maturity.
Balance Sheet
A declaration of a company's financial health, detailing assets, obligations, and the equity of its owners at a targeted date.
- Know the classification and reporting of investments on the balance sheet.
Verified Answer
TW
Tykieya WatsonJul 06, 2024
Final Answer :
True
Explanation :
Cash and cash equivalents include only liquid assets that can be easily converted into cash, such as bank accounts, money market funds, and short-term certificates of deposit, and not investments such as stocks or bonds which can fluctuate in value.
Learning Objectives
- Know the classification and reporting of investments on the balance sheet.
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