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and subsidiaries ("Lowe's"), a home improvement retail chain store, reported cash and cash equivalents, receivables and inventories in their February 2, 2006 year ending Securities and Exchange Commission ("SEC") Form 10-K/A. The information on this filing was provided by the official SEC website. Cash, "the most liquid of assets, is the standard medium of exchange and the basis for measuring and accounting for all other items" (Kieso, p. 314). A company needs to have the easy access to these funds in order to pay employees, vendors or to fund a new venture. While cash is the most liquid of assets, cash equivalents "are short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present insignificant risk of changes in interest rates" (Kieso, p...
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