Financial Statements

Cash and Cash Equivalents

Definition

What is Cash and Cash Equivalents?

Cash plus highly liquid short-term investments with insignificant value-change risk.

Example in practice

The company holds bank balances and three-month Treasury bills.

Keep learning

Income generated from selling goods or services before expenses are deducted.

The percentage increase or decrease in revenue over a period.

Direct costs attributable to goods or services sold during a period.

Gross profit expressed as a percentage of revenue.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.