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Class 12 Tuition > Learn Accountancy > What is the difference between Cash & Cash Equivalent?
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What is the difference between Cash & Cash Equivalent?

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1. Cash means Paper money , coins , Money order etc But, Cash Equivalent means Highly Liquidable Securities 2. Cash has not any Time period . It is Demand Receipt But , Cash Equivalent Take some time to convert into cash (90days or less) 3 .Cash exmp: Cash n Bank Deposit But Cash Equivalent exmp:...
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1. Cash means  Paper money , coins , Money order etc

But, Cash Equivalent means Highly Liquidable Securities 

2. Cash has not any Time period . It is Demand Receipt 

But , Cash Equivalent Take some time to convert

into cash  (90days or less)

3 .Cash exmp: Cash n Bank Deposit

But Cash Equivalent exmp: Highly Liquidable - Marketable Security , Treasury Bills etc 

4 . Cash is not convert into cash anymore 

But , Cash Equivalents are Convert  into Cash ..

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Cash is cash in hand and cash at bank where as cash equivalent includes short term highly liquid investment or assets that can be easliy converted into cash
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Finance tutor

Hi Madhav please mind the basic difference between cash and cash equivalents. Cash - the station’s total amount of paper money, coins, checks, money orders and money on demand deposited with financial institutions. Cash Equivalents- all short-term highly liquid investments. The investment must...
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Hi Madhav please mind the basic difference between cash and cash equivalents. Cash - the station’s total amount of paper money, coins, checks, money orders and money on demand deposited with financial institutions. Cash Equivalents- all short-term highly liquid investments. The investment must be easily convertible into a known amount of cash and be close enough to maturity such that its market value is not sensitive to interest rate changes, generally accepted to be90 days or less. Thank You All the best read less
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Chartered Accountant

Cash is cash in hand whereas cash equivalent is cash at bank and in any short term security which can be readily converted into cash within 3 months.
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Tutor

cash means cash in hand whereas cash equivalents means short term investments ( maturity period of less than 3 months ) which can be readily converted into cash
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Cash - the station’s total amount of paper money, coins, checks, money orders and money on demand deposited with financial institutions. Cash Equivalents- all short-term highly liquid investments. The investment must be easily convertible into a known amount of cash and be close enough to maturity...
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Cash - the station’s total amount of paper money, coins, checks, money orders and money on demand deposited with financial institutions. Cash Equivalents- all short-term highly liquid investments. The investment must be easily convertible into a known amount of cash and be close enough to maturity such that its market value is not sensitive to interest rate changes, generally accepted to be 90 days or less. read less
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Accounts Home Tutor

Cash includes cash & bank balances but cash equivalents includes all money market instruments which can be converted into cash at short period of time. Eg. Marketable security etc..
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Tutor

Cash is actual currency and cash equivalents are instruments that are easily convertible or we can say highly liquid such as cheques in hand not yet deposited, savings account, money market instruments, short term deposits with maturity of maximum three months
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Accountancy for CBSE, ISC, PUC 11th/12th, BBA, BCom and MBA

Cash Equivalents include all liquid Assets like Cash and Bank Balances, Marketable Securities, etc. Thus the term Cash equivalents is inclusive of Cash.
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Tutor

Cash equivalent are FD, Debentures, Safe loans and investments, also current assets.
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