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A negative value of cash is an overdraft. It represents money owed to the bank, usually for overdrawn checks.
Marketable securities can rarely have a negative value. This is because the lowest possible value of most marketable securities is zero; investing in a marketable security should not result in a liability.
Certain financial instruments could have negative values, meaning that the holder of the financial instrument owes an economic sacrifice to its counterparty. This should be recorded as a liability at fair market value.
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What is the treatment of interest received on marketable securities in cash flow statement?
Interest received on marketable securities is shown as an increase of cash from investing activities in cash flow statement.
How would Sinking fund cash would be classified on the balance sheet?
marketable securities
The ratio of the sum of cash receivables and marketable securities to current liabilities is called?
Is Current Ratio
What assets are easily convertable into cash among current assets and liquid assets?
Marketable securities are those assets which can easily convert to cash when the need arise to convert them.
A financial ratio that measures the ability to pay current liabilities with liquid assets (cash marketable securities and receivables) is called?
Quick ratio.
What is the treatment of interest received on marketable securities in cash flow statement?
Interest received on marketable securities is shown as an increase of cash from investing activities in cash flow statement.
Why does Marketable securities located on a balance sheet?
Marketable securities are assets of company which can be converted immediately to acquire cash as and when needed.
What assets are likely to be assessed closest to market value?
· Cash and near-cash · Account receivables · Other current assets · Marketable securities
How does Selling marketable securities for cash affect net working capital?
DECREASES
How does cash and marketable securities differ?
Marketable securities are those securitues which can be marketed. eg- we can market the share of any company, debentures can also be marketed, and liquidity of these instruments become very high. while we can't market some instruments, like savings schemes of Post offices and also the liquidity of such instruments become so low. so, cash is different thing and it has nothing to do with marketable securities. because the concept of marketable security is different.Cash can be compare with marketable securities on the basis of its liquidity.
How would Sinking fund cash would be classified on the balance sheet?
marketable securities
In managing cash and marketable securities what should the manager's primary concern?
Liquidity and Safety
What is marketable securities on a balance information sheet?
marketable securities are short term investment by the company to be liquidated when required and until that time earn interest revenue instead of keeping liquid cash in bank.
The ratio of the sum of cash receivables and marketable securities to current liabilities is called?
Is Current Ratio
Is Marketable Securities a current asset?
yes
What assets are easily convertable into cash among current assets and liquid assets?
Marketable securities are those assets which can easily convert to cash when the need arise to convert them.
Why does the purchase of an item classified as a cash equivalent not appear on the statement of cash flows as an investing activity?
A cash equivalent is a short-term investment in marketable securities that can be sold very quickly (three days or less in an active exchange); its purpose is to provide some level of return on excess cash that would otherwise be sitting in a bank account. To that extent that the cash equivalent can be thought of as operating cash on hand, and not as an investment. If, on the other hand, a company bought marketable securities to hold for investment purposes over the long-term that would be investing. Given that the purchase of cash equivalents is related to operating activities it is accounted for in cash flows from operating activities. The investment in marketable securities "held for investment" would be treated as an investing activity.
