Cash and Cash Equivalents
Code: 1110
👁 Views: 59
Account Information
| Account Type | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Cash available to the company
Sub-accounts
1111
Cash in Hand
1112
Bank Account
International Accounting Standards
IFRS
IAS 7
Statement of Cash Flows
Cash equivalents: short-term highly liquid investments convertible to known cash amounts, with insignificant risk of value change.
US GAAP
ASC 230
Statement of Cash Flows
Similar definition. Three-month maturity threshold for cash equivalents. Restricted cash disclosed separately.
FAQ
Is cash an asset?
Yes, cash is classified as a current asset.
What is the normal balance of cash?
Cash has a debit normal balance.