Is a CD Listed as a Cash Equivalent on the Balance Sheet?
Not what you're looking for?
On the issue of cash equivalent you buy a CD with 9 month maturity on June 1. It is now Dec 31, and you are compiling your balance sheet. Since that CD only has 2 months left before it matures, does it qualify to be shown as a Cash Equivalent (essentially as cash)?
Purchase this Solution
Solution Summary
This solution explains if a CD that was purchased in June and reaches maturity nine months later should be shown as a cash equivalent on the December 31st balance sheet.
Solution Preview
We have two main choices when classifying an asset on the balance sheet. We can classify the asset as a current asset or a long-term asset. Because the maturity is less than one year, we know that the CD must be classified as a current asset. We can now take this one step ...
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.