You graduated from college and immediately began work as an accounting consultant at a large private company that provides accounting consultancy services. One of your new clients is interested in your perspective and how they should go about accounting for cash and cash equivalents. Following that, they seem to be overly interested in what is going on in the cryptocurrency market. They hear that people are now able to purchase property using cryptocurrency and are considering investing in it. To your amazement, you look into further details as to how to account for all of the concerns your client has.

Discuss how U.S. GAAP defines Cash and Cash Equivalents (using the Accounting Standards Codification). Is cryptocurrency (such as Bitcoin) considered Cash and Cash Equivalents under U.S. GAAP? Why or why not? If your client did want to sell cryptocurrency in the future, would they need to report a gain or loss on sale? How would they present this in their financial statements?