Cash on the Balance Sheet remind of the following points: 1. Cash is the first asset listed on the balance sheet because it is the most liquid. 2. Funds placed in highly liquid investments such as Treasury bills, money market funds, and commercial paper are called cash equivalents. Since these investments can be sold quickly and easily, funds in these investments can be accessed as easily as cash held in a bank. Therefore, they are considered "equivalent" to cash. 3. Readers of the financial statements normally assume that a company may use its cash at any time for any purpose. If this is not true, the amount of funds not available for withdrawal must be disclosed in the notes to the financial statements. For example, any compensating balance required by a bank as part of a loan agreement or line of credit must be disclosed. Likewise, multinational companies must disclose any limits that foreign governments set on the amount of cash that may be taken out of deposit in foreign banks.