Cash and cash equivalents

Cash on hand and in bank accounts, plus deposits that can be withdrawn at short notice without loss of value.
Finance
Line items

Cash and cash equivalents in the financial statements

Cash and cash equivalents is a balance-sheet line item: a balance at a date, with a debit balance in the ledger.

Cash and cash equivalents in Business Central

How the accounts are selected

  • Category Cash (3) and every category below it

5 posting accounts in total.

Posting accounts

Metrics using cash and cash equivalents

  • Cash Ratio: (Cash and cash equivalents + Short-term investments) ÷ Current liabilities
  • Quick Ratio: (Cash and cash equivalents + Short-term investments + Trade receivables) ÷ Current liabilities
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