The conversion should normally provide results comparable to those that would have occurred if the business had completed operations using only one currency. Translation losses from the devaluation of foreign currency are not reported with cash and cash equivalents. These losses are reported in the financial reporting account called “accumulated other comprehensive income.” However, if […]
Month: August 2022
Cash and cash equivalents definition
On the other hand, in this example, Tyson Fresh Meats, Inc. has combined cash and cash equivalents in a single item. Working capital is important for funding a business in the short term (12 months or less) and can be used to help finance inventory, operating expenses, and capital purchases. In practice, the cash and cash […]