Ask Question
BusinessBusiness
12 September, 00:57

Why should companies be careful to define cash and cash equivalents correctly?

+2
Answers (1)
  1. 12 September, 04:46
    0
    If a company overstates cash and cash equivalents, they will appear more liquid than they really are. which would mislead investors and they may feel risky for investing on that company shares. On other side, it will be more difficult to calculate the exact value or net worth of the company.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Why should companies be careful to define cash and cash equivalents correctly? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Blossom Company issued $504,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Blossom Company uses the effective-interest method of amortization for bond premium or discount.
Answers (1)
The County legislature approved its 2020 budget. Revenues from property taxes are estimated to be $800,000. The assessed value of all the property in the county is $40 million.
Answers (1)
Zoum Corporation had the following transactions during 2017: 1. Issued $250,000 of par value common stock for cash. 2. Recorded and paid wages expense of $120,000. 3. Acquired land by issuing common stock of par value $100,000. 4.
Answers (1)
A person who disagreed with the wagner act would most likely support the creation of the national labor relations board the creation of the social security act francis townsend's old age revolving pension plans welfare capitalism programs put forth
Answers (1)
Statistical models are used for forecasting labor demands because they are good at capturing "once-in-a-lifetime" changes. True False
Answers (1)
New Questions in Business
You purchased 600 shares of SLG, Inc. stock at a price of $41.20 a share. You then purchased put options on your shares with a strike price of $45.00 and an option premium of $1.10. At expiration, the stock was selling for $48.30 a share.
Answers (1)
Which of the following statement is true? a. The demand for puma shoes is more elastic than the demand for shoes b. The demand for Cheerios is less elastic than the demand for cereal c. Products with many complements have a more elastic demand d.
Answers (1)
What is the par value for an ingredient?
Answers (1)
What is the second rule of risk management
Answers (2)
A typical high-income household in 1980 earned $125,556. a similar household in 2009 earned $180,001. what was the relative increase in income for these households from 1980 to 2009? round to the nearest one percent. incorrect%
Answers (1)
Home » Business » Why should companies be careful to define cash and cash equivalents correctly?
Sign Up Forgot Password?