Cash Equivalents (Definition, Examples) | Complete Guide
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Here are the key differences – 1. Cash:Cash is money in the form of currency. This includes all bills, coins, and currency notes. 2. Cash equivalents:For an investment to qualify as an equivalent, it must be readily convertible to cash and be subject to insignificant value risk. Therefore, an investment normally qualifies as a cash equivalent only ...
Here are the key differences – 1. Cash:Cash is money in the form of currency. This includes all bills, coins, and currency notes. 2. Cash equivalents:For an investment to qualify as an equivalent, it must be readily convertible to cash and be subject to insignificant value risk. Therefore, an investment normally qualifies as a cash equivalent only ...
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