What does Deer Solution consider to be cash equivalents?

According to Deer Solution's 2025 Franchise Disclosure Document, cash equivalents are defined within the context of the Statement of Cash Flows. For accounting purposes, Deer Solution considers both bank accounts and cash in transit for bank deposits as cash equivalents.

The key criterion for classifying these items as cash equivalents is their maturity. Only those investments with maturities of three months or less are included in this category. This definition is important for understanding Deer Solution's financial statements, as it provides insight into the company's short-term liquidity and how it manages its cash flow.

For a prospective Deer Solution franchisee, understanding this definition can be helpful in assessing the financial health and stability of the franchisor. It clarifies how Deer Solution accounts for its most liquid assets, which can be an indicator of its ability to meet short-term obligations and invest in growth opportunities. This accounting policy conforms to generally accepted accounting principles (GAAP) and is consistently applied in the preparation of financial statements.