Ask Question
BusinessBusiness
30 December, 14:38

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

+5
Answers (1)
  1. 30 December, 15:08
    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?
Find an answer to your question 👍 “Why should companies be careful to define cash and cash equivalents correctly? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Scientific notations 452
Answers (2)
What term is used to designate a building, structure, or mobile home site which is used or occupied or is intended to be used or occupied as the home residence or sleeping place of one or more individuals, groups or families whether or not living
Answers (1)
Fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract. This year, he began receiving a $1,300 monthly payment that will continue for his life. On the basis of his age, he can expect to receive $312,000.
Answers (1)
Your friend Ed refuses to use networking to get a job. He wants to get hired based on his merits and not on whom he knows. Do you agree or disagree with Ed? Explain your answer.
Answers (1)
Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in one year, and its equity cost of capital is 15%. What price must you expect it to sell for right after paying the dividend in one year in order to justify its current price
Answers (1)
New Questions in Business
Yakov left his job as a plumber when his wife took a position in another region. the quantity of plumbing services demanded is considerably lower in the new region, in part because of high union-negotiated wages.
Answers (1)
Luthan Company uses a plantwide predetermined overhead rate of $23.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $278,400 of total manufacturing overhead cost for an estimated activity level of 12,000
Answers (1)
Sweet Cream is an ice cream manufacturer. It sells Guilt-Free, a zero-calorie ice cream, which competes with Flavor Bell's Moo Sweet, a low-calorie ice cream. Flavor Bell reduces Moo Sweet's prices to match Guilt-Free's prices.
Answers (1)
Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A. finance/accounting B. research and development C. production/operations D. marketing
Answers (1)
If someone pays medical expenses directly to the provider, such as a doctor or hospital, what percentage of the gift is exempt from gift tax?
Answers (1)
Home » Business » Why should companies be careful to define cash and cash equivalents correctly?
Sign Up Forgot Password?