Where do cash equivalents appear on the balance sheet?
A)They are reported immediately after Cash.
B)They are included with Cash.
C)They are included with Cash Pledged as Collateral.
D)They are not reported on the Balance Sheet.

Question

Quizplus · Accepted Answer

Cash equivalents are included with cash on the balance sheet as they are highly liquid and readily convertible into cash. Reporting them separately would not provide meaningful information to users of the financial statements.

Where Do Cash Equivalents Appear on the Balance Sheet