- A short-term security that is sufficiently liquid that it may be considered the financial equivalent of cash. The New York Times Financial Glossary
* * *cash equivalent cash equivalent ➔ equivalent
* * *An asset that is so easily and quickly convertible to cash that holding it is equivalent to holding cash. A Treasury bill is considered cash equivalent. This term is also used to describe an alternative method of liquidating a position, whereby the seller provides the cash equivalent to the buyer rather than the security itself. Settling by cash equivalent is a much simpler process than providing the underlying bonds or shares. It is usually done when the counter party to a deal has no interest in owning the underlying securities but wishes to protect himself against interest rate or market moves.► See also Cash.
* * *cash equivalent UK US noun [C]► MONEY an amount of money that has the same value as something: »
The insurance policy states that the insurer will endeavour to replace your lost or damaged goods rather than offer a cash equivalent.► [often plural] ACCOUNTING, FINANCE money in a company's bank accounts and other assets that can easily be changed into money: »
The company believes that its existing cash and cash equivalents are sufficient to meet their cash requirements during the next twelve months.
Financial and business terms. 2012.
Look at other dictionaries:
cash equivalent — A method which can be used to calculate a transfer payment from a salary related pension scheme (salary related scheme). A member of a final salary pension scheme (final salary scheme) who is not currently drawing a pension and who has more than… … Law dictionary
cash equivalent — noun a highly liquid debt instrument with maturities of less than three months • Hypernyms: ↑debt instrument, ↑obligation, ↑certificate of indebtedness • Hyponyms: ↑commercial paper … Useful english dictionary
cash equivalent transfer value — (CETV) A member of a salary related scheme who has more than 12 months to go before attaining the scheme s normal retirement age has a statutory right under the Pension Schemes Act 1993 to take a cash equivalent transfer value (CETV) to another… … Law dictionary
cash equivalent doctrine — Generally, a cash basis taxpayer does not report income until cash is constructively or actually received. Under the cash equivalent doctrine, cash basis taxpayers are required to report income even though no cash is actually received in a… … Black's law dictionary
Cash-equivalent items — Temporary investments of currently excess cash in short term, high quality investment media such as treasury bills and Banker s Acceptances. The New York Times Financial Glossary … Financial and business terms
cash equivalent value — The amount of *cash that can be received in an *arm’s length transaction for the sale of an asset. See also *fair market value … Auditor's dictionary
cash-equivalent items — Examples include Treasury bills and banker s acceptances. Bloomberg Financial Dictionary … Financial and business terms
current cash equivalent — CCE In continuously contemporary accounting, the measure of assets and liabilities … Accounting dictionary
equivalent — e‧quiv‧a‧lent [ɪˈkwɪvlənt] noun [countable] something that is equal in value, amount, quality etc to something else: • The Japanese bank had the equivalent of $131 billion in assets on March 31. equivalent adjective : • It must issue 5 million… … Financial and business terms
Cash and cash equivalents — are the most liquid assets found within the asset portion of a company s balance sheet. Cash equivalents are assets that are readily convertible into cash, such as money market holdings, short term government bonds or Treasury bills, marketable… … Wikipedia