Cash and Cash Equivalents
Cash and cash equivalents include cash and highly liquid short-term investments readily convertible to known cash amounts.
Accounting terms for cash equivalents, cash-flow activity labels, non-cash items, and line-item classification.
Cash Flow and Statement Classification covers cash equivalents, cash-flow activity labels, non-cash items, and line-item classification.
Use these pages when accounting mechanics change how a transaction becomes a reported asset, liability, income item, expense, equity item, or cash-flow classification. It sits inside Foundations and Measurement, so readers can move up when the broader accounting context matters.
Use the table below to choose the narrower accounting branch before applying a term to a statement line, model input, audit trail, tax schedule, covenant test, or management report.
| Area | Use it for |
|---|---|
| Cash and Cash Equivalents | Cash and cash equivalents include cash and highly liquid short-term investments readily convertible to known cash amounts. |
| Extraordinary Item | An extraordinary item was a separately classified unusual and infrequent event under older accounting presentation rules. |
| Investing Activities | Investing activities are cash flows from acquiring or disposing of long-term assets, securities, and business investments. |
| Non-Cash Item | A non-cash item affects accounting income or financial position without a current-period cash inflow or outflow. |
| Operating Activities | Operating activities are cash flows and transactions from the entity’s primary revenue-producing business operations. |
| Other Income | Other income includes income outside core revenue lines, such as incidental gains, interest, or nonoperating items. |
| Top Line | Top line refers to revenue or sales before expenses, margins, taxes, and bottom-line profit measures. |
Accounting-foundation content is educational and does not provide bookkeeping, accounting, tax, audit, legal, investment, or valuation advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Cash and cash equivalents include cash and highly liquid short-term investments readily convertible to known cash amounts.
An extraordinary item was a separately classified unusual and infrequent event under older accounting presentation rules.
Investing activities are cash flows from acquiring or disposing of long-term assets, securities, and business investments.
A non-cash item affects accounting income or financial position without a current-period cash inflow or outflow.
Operating activities are cash flows and transactions from the entity's primary revenue-producing business operations.
Other income includes income outside core revenue lines, such as incidental gains, interest, or nonoperating items.
Top line refers to revenue or sales before expenses, margins, taxes, and bottom-line profit measures.