General Inquiries

Cash and Cash Equivalents

  • 1.  Cash and Cash Equivalents

    Posted 02-07-2019 11:33
    Hello,

    I'm debating if AR would be considered a cash equivalent?

    Also what other items constitute a cash equivalent?

    I am working on financial ratios for the owner.

    Thank you,

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    Christine Rivera
    Controller
    Via Technology, LLC
    San Antonio TX
    (210) 227-7726
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  • 2.  RE: Cash and Cash Equivalents

    Posted 02-08-2019 10:37
    Edited by Chris Sundberg 02-08-2019 10:39
    AR is not a cash equivalent under GAAP. Cash equivalents generally turn into cash in three months or less and should have little or no risk of changing in value, so things like Certificates of Deposit, short term bonds, treasury bills, etc. The only one I see regularly on contractor financials is a certificate of deposit.

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    Chris Sundberg, CPA
    Assistant Vice President
    Mullis Newby Hurst LP
    Addison TX

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  • 3.  RE: Cash and Cash Equivalents

    Posted 02-08-2019 11:18
    Great! Thank you! Can end that debate!

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    Christine Rivera
    Controller
    Via Technology, LLC
    San Antonio TX
    (210) 227-7726
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