Classifying cash and cash equivalents


Problem: For some of Canadian companies...

Question 1. Why do you think some companies classified cash as a separate account in the balance sheet while other firms did not?

Question 2. Do you think that it is more useful to the user of the financial statement to classify cash separately rather than combining cash with cash equivalents? Explain your answer.

Question 3. Does classifying cash and cash equivalents together on the balance sheet contradict any generally accepted accounting principles?

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Finance Basics: Classifying cash and cash equivalents
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