How to calculate the balance of cash and cash equivalents at the end of the period

Closing balance of cash Closing balance of the balance sheet "Monetary funds";

Opening balance of cash Opening balance of the balance sheet "Monetary funds";

Net increase in cash and cash equivalents Closing balance of cash Opening balance of cash.

Cash equivalents refer to investments held by a company with a short maturity, strong liquidity, easy conversion into a known amount of cash, and low risk of changes in value. The definition of cash equivalents includes four conditions that must be met to determine whether an investment is cash equivalents: (1) short term; (2) Strong liquidity; (3) easy to convert into cash in a known amount; (4) The risk of value change is small.

Among them, the short maturity and strong liquidity emphasize the liquidity of cash equivalents, while the easy conversion into known amounts of cash and the low risk of value changes emphasize the ability to pay cash equivalents. The term mentioned here is shorter, generally referring to the expiration within 3 months from the date of purchase. Therefore, typical cash equivalents include short-term bonds maturing 3 months from the date of purchase, which must be readily convertible into a known amount of cash.

Although the negotiable ** purchased by the enterprise as a short-term investment has a short term and a strong ability to liquidate, it is not a cash equivalent because the amount of its realization is uncertain and the risk of its value change is greater. Therefore, cash equivalents have the characteristics of being convertible into fixed cash at any time, imminent maturity, and have little impact on their value due to changes in interest. Treasury bills, commercial cashier's notes, money market**, negotiable certificates of deposit, commercial cashier's notes and banker's acceptances that normally mature or settle within three months from the date of investment can be classified as cash equivalents.

Cash accounts include bank deposits and cash on hand.

Balance sheet.

The closing balance of monetary funds is not equal to the cash flow statement.

It is very normal for cash and cash equivalents to end the period, especially in the financial statements of listed companies. The main reasons are as follows:

The content of the two is different: monetary funds include cash in hand, bank deposits, and other monetary funds.

In addition to cash (including cash on hand and deposits that can be paid at any time), cash and cash equivalents (including investments that are held for a short period of time, are highly liquid, are easy to convert into a known amount of cash, and have less risk of value changes).

Listed companies usually have some restricted cash, and restricted cash does not meet the definition of cash or cash equivalents in the cash flow statement, so restricted cash is not included in the cash flow statement. Common restricted cash, frozen funds, etc. There are also the items mentioned above that are not monetary funds, but are cash equivalents.

For example, trading financial assets. Wait.

Cash equivalents are investments held by a business that have a short maturity, are highly liquid, are easily convertible into a known amount of cash, and have little risk of changes in value.

Monetary funds include cash and bank deposits, and other deposits, which can be paid directly by the enterprise. are two different concepts. So they are not equal.

The cash in the cash flow statement not only refers to monetary funds, but also includes other monetary funds that can be realized within three months, such as: deposits due within three months, debts, etc. You can check if any of these are available.

If it is like a general company, there are only monetary funds, then the cash flow statement is wrong.

Hello, the closing cash and cash equivalents balance in the cash flow statement = the closing balance of monetary funds in the balance sheet, in the balance sheet"Monetary funds"The closing balance of the project is based on"Cash"、"Bank deposits"with"Funds in other currencies"The sum of the closing balances of these three accounts is enterprising. Closing balance of cash Balance sheet "Monetary Closed Shed Funds" Closing Balance; Balance of Cash Opening Balance Balance of Balance Sheet "Monetary Funds"; Net increase in cash and cash equivalents Closing balance of cash Opening balance of cash. Thank you for your consultation, I hope this service can help you, you can click on my avatar to follow me, and if you have any questions in the future, please consult me again, and finally wish you a happy life!

1. The balance of cash and cash equivalents at the end of the period in the cash flow statement = the balance of the monetary funds at the beginning and end of the balance sheet. in the balance sheet"Currency imitation of rolling funds"The closing balance of the project is based on"Cash"、"Bank deposits"with"Funds in other currencies"The sum of the closing book balances of these three accounts is indicated.

2. Between the balance sheet and the cash flow statement"Collusion relationships"

1. When the enterprise does not have trading financial assets:

In assets and liabilities"Monetary funds"The end of the period of the project - the beginning of the period = in the cash flow statement"Net increase in cash and cash equivalents"

2. When the enterprise has trading financial assets:

In assets and liabilities"Monetary funds"The end of the period of the project - the beginning of the period) + [trading financial assets"End of period - beginning of period] = net increase in cash and cash equivalents in the cash flow statement.

3. Item 3 of the Schedule (i.e. Supplementary Information) of the Cash Flow Statement"Net increase in cash and cash equivalents"Allowance Closing balance of cash = balance sheet"Monetary funds"Closing balance.

Opening balance of cash = balance sheet"Monetary funds"Opening balance.

Balance of cash equivalents = balance sheet"Tradable financial assets"Closing balance.

Cash flow statement ending cash and cash equivalents balances.

Related knowledge: The closing cash balance of the cash flow statement is the cash balance, bank deposit balance, and cash equivalents balance of the general ledger. Cash and cash equivalents in the cash flow statement refer to cash that can be used for payment at any time and financial products that can be quickly realized.

Its closing balance is equal to the closing cash balance in the cash journal, and there will be no negative number under normal circumstances, and the negative number indicates that the accounting treatment is incorrect; At this time, it is necessary to review the formula again.

To be precise, the beginning and closing balances of the balance sheet are in point in time. The closing balance is the amount of balance on the account at the end of the month for each item in the statement month.

Closing cash and cash equivalents balance in the cash flow statement = closing balance of monetary funds in the balance sheet, in the balance sheet"Monetary funds"The closing balance of the project is based on"Cash"、"Bank deposits"with"Funds in other currencies"The sum of the closing book balances of these three accounts is indicated.

Closing balance of cash Closing balance of the balance sheet "Monetary funds";

Opening balance of cash Opening balance of the balance sheet "Monetary funds";

Net increase in cash and cash equivalents Closing balance of cash Opening balance of cash.

Closing balance of cash Closing balance of the balance sheet "Monetary funds";

Opening balance of cash Opening balance of the balance sheet "Monetary funds";

Net increase in cash and cash equivalents Closing balance of cash Opening balance of cash.