In preparing a statement of cash flows, cash equivalents are subtracted from cash in order to compute the net change in cash during a period.

Name: In preparing a statement of cash flows, cash equivalents are subtracted from cash in order to compute the net change in cash during a period.
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Cash equivalents are included with cash to compute the net change in cash during a period, as they are considered part of the total cash balance.

In Preparing a Statement of Cash Flows, Cash Equivalents Are