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If a business has cash or cash equivalents, the aggregate of those belongings is always proven on the very best line from the equilibrium sheet. It is because cash and cash equivalents are current property, that means They are essentially the most liquid of small-expression belongings.
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The Bottom Line Cash and cash equivalents are one of the most liquid latest belongings on an organization's harmony sheet. The assortment of financial products that comprise the more info balance of the classification typically have maturities of ninety times or less, are very easily convertible to cash, minimal risk, and should not have constraints that Restrict their liquidity.
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