To qualify as cash or a cash equivalent to be included in the statement of cash flows
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To qualify as cash or a cash equivalent to be included in the statement of cash flows outlining the difference between beginning and ending balances of cash, an item must meet which of the following criteria:
a. Be readily convertible to a known amount of cash
b. Have a maturity of three months or less from its date of acquisition
c. Be subject to insignificant risk of changes in value
d. All of the above.
MaturityMaturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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