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Cash concludes cash on hand and demand deposits.
Cash equivalents are short-term, highly liquid investments that can be convertible into readily known amounts of cash, which are insignificant risk of value changing.
Bank overdrafts may be counted as a negative element in cash and cash equivalents, though longer-term bank borrowings are generally considered to be financing activities.
Cash and cash equivalents is the central concept in the preparation and interpretation of cash flow statements. The cash flow according to operation activities, investing activities and financing activities of cash and cash equivalents to prepare.
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