Short-Term Assets: Cash and Cash Equivalents

Lessambo, Felix I.

doi:10.1007/978-3-031-15663-2_2

Short-Term Assets: Cash and Cash Equivalents

Felix I. Lessambo²

Chapter
First Online: 01 November 2022

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Abstract

A balance Sheet (also known as the Statement of Financial Position) provides the value of a firm’s assets, liabilities, and equity on a particular date. Cash and Cash Equivalents is an asset that appears on the statement of financial position of a business and includes currency (coins and banknotes) held by a business (in hand and in bank accounts) and cash equivalents.

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Notes

1.
Current assets are assets that are expected to be realized within a year or normal operating cycle, whichever is longer.
2.
Current liabilities are liabilities that are expected to liquidate within a year or normal operating cycle, whichever is longer.
3.
SFAS 157: Fair value Measurements.
4.
SFAS 159: The fair value Option for Financial Liabilities.
5.
P. D. McCarthy (2004): Unnecessary Complexity in Accounting Principles. The CPA Journal, Vol. 74, No. 3, pp. 18–19.
6.
US Congress (2011): Present Law and Issues Related to the Taxation of Financial Instrument and Products—A Report to the Joint Committee on Taxation, p. 49.
7.
ASC 825—Financial Instruments.
8.
US Congress (2011): Present Law and Issues Related to the Taxation of Financial Instrument and Products—A Report to the Joint Committee on Taxation, p. 49.
9.
US Congress (2011): Present Law and Issues Related to the Taxation of Financial Instrument and Products—A Report to the Joint Committee on Taxation, p. 50.
10.
US Congress (2011): Present Law and Issues Related to the Taxation of Financial Instrument and Products—A Report to the Joint Committee on Taxation, pp. 90–94.
11.
Accounting Standards Codification Topic 820-10-30, Fair Value Measurements and Disclosures (ASC 820).
12.
US Congress (2011): Present Law and Issues Related to the taxation of Financial Instrument and Products—A Report to the Joint Committee on Taxation, p. 53.
13.
ASC 815-20-25.
14.
ASC 815-20-25-3—Derivatives and Hedging.

References

P. D. McCarthy (2004): Unnecessary Complexity in Accounting Principles. The CPA Journal, Vol. 74, No. 3, pp. 18–19.
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US Congress (2011): Present Law and Issues Related to the Taxation of Financial Instrument and Products—A Report to the Joint Committee on Taxation, pp. 49, 50, 53, 90–94.
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Fordham University, New York, NY, USA
Felix I. Lessambo

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Felix I. Lessambo
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Correspondence to Felix I. Lessambo .

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Lessambo, F.I. (2022). Short-Term Assets: Cash and Cash Equivalents. In: Financial Statements. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-15663-2_2

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DOI: https://doi.org/10.1007/978-3-031-15663-2_2
Published: 01 November 2022
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-031-15662-5
Online ISBN: 978-3-031-15663-2
eBook Packages: Economics and FinanceEconomics and Finance (R0)

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