Does microsoft define cash equivalents

Cash and Cash Equivalents. Cash and Cash Equivalents Disclosure. The entire disclosure for cash and cash equivalent footnotes, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements.

Disclosure Text Block Supplement. Table Text Block Supplement. Schedule of Cash and Cash Equivalents. An element designated to encapsulate any additional information related to cash and cash equivalents not otherwise addressed by the existing taxonomy.

Restrictions on Cash and Cash Equivalents. Schedule of Compensating Balances. Tabular disclosure of compensating balance arrangements that are not agreements which legally restrict the use of cash amounts shown on the balance sheet. Cash, Insured and Uninsured. Cash, Cash Equivalents, and Marketable Securities.

The entire disclosure of cash, cash equivalents, and debt and equity securities, including any unrealized or realized gain loss. Cash, Cash Equivalents, and Short-term Investments. The entire disclosure of the components of cash, cash equivalents, and short-term investments. The entire disclosure for cash, cash equivalents, investments in debt and equity instruments including cost and equity investees and related income statement amounts , equity and cost method investments, investments in joint ventures and any other investment.

Cash, Cash Equivalents and Investments. Amount of currency on hand as well as demand deposits with banks or financial institutions. Restricted Cash and Cash Equivalents.

Amount of cash and cash equivalents, and cash and cash equivalents restricted to withdrawal or usage. Schedule itemizing specific cash or cash equivalent items which are subject to compensating balance arrangements, along with the nature of the arrangements. The amount of cash deposited in financial institutions as of the balance sheet date that is insured by the Federal Deposit Insurance Corporation. Cash, Uninsured Amount. Any items falling within this definition are classified within the current assets category in the balance sheet.

The two primary criteria for classification as a cash equivalent are that an asset be readily convertible into a known amount of cash, and that it be so near its maturity date that there is an insignificant risk of changes in value due to changes in interest rates by the time the maturity date arrives.

If there is any question about whether a financial instrument can be classified as a cash equivalent, consult with the company's auditors.

Cash and cash equivalents information is sometimes used by analysts in comparison to a company's current liabilities to estimate its ability to pay its bills in the short term. However, such an analysis may be excessively conservative if there are receivables that can be readily converted into cash within a few days; in this case, receivables should also be included in the analysis.

Cash in checking accounts. Bank drafts. Cash and cash equivalents are those items which are recorded in the balance sheet of the company and refers to the value of the assets of the company which are held in cash or can be easily convertible to cash i. Cash and cash equivalent offer a high level of liquidity to the company. They are generally a part of the balance sheet of a company and refers to the value of the asset of the company which is either held in cash or near to cash equivalent like short term bonds, treasury bills, commercial papers, etc.

Marketable securities and money market holdings are equivalent of cash because they are highly liquid and are not exposed to material deviations in value. A company with a healthy sum of cash and cash equivalent in its balance sheet is generally considered efficient enough or capable enough to meet its short-term obligations. Cash equivalents are generally denoted for those assets whose maturity time is less than three months or 90 days.

Cash and cash equivalent are generally recorded in the balance sheet of a company under the current asset section with the same name as cash and cash equivalent and only the overall value is shown. The break up of the overall sum is provided by a note at the end of the financial statement.

The cash and cash equivalent will generally bear a number beside its total, which generally describes the serial number in the notes section to understand the break up of the cash and cash equivalent.