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What is included in cash and cash equivalents?

Examples of Cash
In accounting, a company's cash includes the following:

Definition of Cash Equivalents
Cash equivalents are short-term, highly liquid investments with a maturity date that was 3 months or less at the time of purchase. In other words, there is very little risk of collecting the full amount being reported.

Examples of Cash Equivalents
Examples of cash equivalents include:

  • money market accounts
  • U.S. Treasury Bills
  • commercial paper

Typically, the combined amount of cash and cash equivalents will be reported on the balance sheet as the first item in the section with the heading current assets.