Which is not considered as a cash equivalent?
Not all qualifying short-term, highly liquid investments are treated as cash equivalents. An agency discloses its policy for determining which items are treated as cash equivalents. Show
When cash equivalents are purchased and sold as part of the agency's cash management process, the associated cash flows are not reported as inflows and outflows on the statement of cash flows. To do so, would inflate both cash receipts and disbursements. Investments with original maturities of three months or lessGenerally, only investments with original maturities of three months or less meet this definition. An example of an investment with original maturities of three months or less is illustrated below:
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