Cash and Cash Equivalents
Cash and cash equivalents (CCE) are the most liquid assets on a balance sheet. They include cash on hand, demand deposits, and short-term investments that are readily convertible to known amounts of cash with original maturities of three months or less.
Example: A company reports cash and cash equivalents of $2.5 million on its balance sheet, including cash in bank accounts and a three-month Treasury bill investment.
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