cash and equivalents

cash and equivalents definition - business

cash and equivalents

The sum of cash and short-term assets that can be easily converted to cash. This measure of corporate liquidity indicates a firm's ability to meet its short-term obligations.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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