The amount of cash reported in a company's balance sheet does not include cash equivalents,defined as short-term investments that have a maturity date no longer than three months from the date of purchase.Cash equivalents are included in the cash balance.

Question

Quizplus · Accepted Answer

Cash and cash equivalents are reported as a single line item on the balance sheet, which means cash equivalents are included in the cash balance, contrary to the statement that they are not included.

The Amount of Cash Reported in a Company's Balance Sheet