Does Deka Lash consider commercial paper with a maturity of more than three months a cash equivalent?

According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash defines cash equivalents as demand deposits with banks, highly liquid money market funds, United States government securities, overnight repurchase agreements, and commercial paper. However, only commercial paper with maturities of three months or less when purchased is considered a cash equivalent by Deka Lash.

For a prospective franchisee, this definition is relevant in understanding Deka Lash's financial statements and how the company manages its liquid assets. Knowing the criteria Deka Lash uses to classify items as cash equivalents provides insight into their short-term financial management practices.

It is important to note that this definition is specific to the accounting policies used by Deka Lash and may differ from those of other companies or franchises. Understanding these definitions helps potential franchisees interpret the financial health and stability of Deka Lash based on their financial disclosures.