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Replies to #427 on XRS Corp. (XRSC)
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Toxic Avenger

09/19/11 1:41 PM

#428 RE: russo123 #427

LOL, cash equivalents are highly liquid securities that are the same as cash.

"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 securities and commercial paper. Cash equivalents are distinguished from other investments through their short-term existence; they mature within 3 months whereas short-term investments are 12 months or less, and long-term investments are any investments that mature in excess of 12 months. Another important condition a cash equivalent needs to satisfy is that the investment should have insignificant risk of change in value; thus, common stock cannot be considered a cash equivalent, but preferred stock acquired shortly before its redemption date can be."
http://en.wikipedia.org/wiki/Cash_and_cash_equivalents

Depreciation and Deferred Product costs are NOT cash equivalents.

just sayin' ;-)