What are money market instruments and their examples?

What are money market instruments? Money market instruments are short-term low risk financial instruments which are involved in short-term borrowings and lending with original maturities of one year or shorter periods. These instruments are composed of financial institutions and dealers in money or credit who intend to either borrow or lend. The instruments are traded [...]

What is a statement of cash flow? Financial definition

International Accounting Standard (IAS 7), issued by International Accounting Standards Board (IASB) states that the statement of cash flow analyzes changes in cash and cash equivalents during a period. Cash and cash equivalents comprise cash on hand and demand deposits, together with short-term, highly liquid investments that are readily convertible to a known amount of [...]

What are Considered as Cash and Cash Equivalents?

CCE or Cash and Cash Equivalents refer to the liquidated assets that are declared on the balance sheet of the company. It is often reflected under the asset section of the sheet. In accordance to the company’s chart of accounts, Cash and Cash Equivalents are often the first account on the balance sheet. Cash and [...]