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- Title
What Happened to CCE?
- Authors
Chambers, R. J.
- Abstract
The author thinks that he can fairly claim to have introduced the term "current cash equivalent (CCE)" into the literature, but he disavows any responsibility for the confusion with which some have surrounded it. Larson and Schattke claimed to have demolished his contention that current cash equivalents were additive. Professor Vickrey now contends that their arguments fail "if CCE is defined as the numerosity of a set of homogeneous monetary units which can be obtained for a severable mean (sic) in the market." "Cash equivalent" was chosen as a general term to describe the common property of sums of money and resale prices of non-monetary assets. But the cash held at any point of time and the prices of goods at any point of time have particular significance at that point of time only. If aggregative statements are to be serviceable, for retrospective analysis up to a point of time or for the analysis of prospects from that point of time forward, their components always should be up-to-date, contemporary or "current." Hence, current cash equivalent. The cash equivalent of any asset at any time, being its realizable price, is expressed in a number of dollars. CCE hasn't really suffered from the assaults of fallacious logic and its consistency with the views of classical writers on measurement has not been demolished. In fact, it is alive and doing well in the company of all who buy and sell and who borrow and lend on the security of assets.
- Subjects
ASSETS (Accounting); CASH basis accounting; ACCOUNTING; PROSPECTING costs; PURCHASING power; RESALE value; STOCKS (Finance); PRICES; COLLEGE teachers
- Publication
Accounting Review, 1976, Vol 51, Issue 2, p385
- ISSN
0001-4826
- Publication type
Article