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Cash and Cash Equivalents Meaning

Cash and Cash Equivalents are items on a company’s balance sheet that refer to the value of assets held in cash or easily converted to cash.

For example, CVS Health, an American healthcare company, shows $9,408 million as cash and cash equivalents in its balance sheet as of 31st December 2023. It is an increase from 2023’s report of $7,854 million. It signifies that the firm has high liquidity and is healthy.

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(Image Source: CVS Health Annual Report 2023)

Key Highlights

Cash and Cash Equivalent is readily accessible funds that can help pay for sudden expenses

It includes physical currency and any funds that can easily convert into cash. It has short-term investments, such as money market funds and commercial paper

A business’s amount on hand can be a good indicator of its financial health. Companies need to maintain liquidity and meet their financial obligations

Businesses should carefully monitor their assets, as they can be susceptible to theft and fraud.


Cash and cash equivalents refer to the value of a company’s assets like short-term bonds, treasury bills, commercial papers, etc. Marketable securities and money market holdings are equivalent to cash because they are highly liquid and do not have material deviations in value. Bank accounts and marketable securities are cash equivalents, just like debt securities.

It is generally for those assets whose maturity is less than three months or 90 days. When a business records it on its balance sheet, it is the total money it has on hand. All businesses must identify it in their annual report.

Cash and Cash Equivalents On the Balance Sheet (Financial Statement)

It is generally available in a company’s balance sheet under the current asset section with the same name as cash and cash equivalent, and only the overall value is present.

A note provides the breakup of the overall sum at the end of the financial statement. The cash and cash equivalent will generally bear a number beside its total, which describes the serial number in the notes section to understand the breakup of the cash and cash equivalent.

(Image Source: Apple Inc Annual Report 2023)

Real Company Examples Example #1-Apple Inc.

(Image Source: Apple Inc Annual Report 2023)

According to the 2023 financial statement by Apple Inc, its total cash and cash equivalents are $34,940 million.

Cash= $34940 million

Total assets=$351002 million

Cash as % of Total Assets= 9.95%

Total Sales= $297392 million

Cash as % of Total Sales= 11.74%

The cash-to-total asset ratio of the company is 9.95% which is not very significant. Similarly, the cash-to-sales ratio is 11.74 %, which indicates that most sales are in credit. The company is not thinking of any heavy investment in the future as its cash reserves are unlimited compared to the total assets.

Example #2-Microsoft Corporation

(Image Source: Microsoft Annual Report 2023)

The financial statement of Microsoft shows that the value of assets has increased in the financial year 2023 for the company.

Cash= $14224 million

Total sales in 2023= $168088 million

Cash % of Total Sales (2023) = 8.46%

Total sales in 2023= $143015 million

Cash % of Total Sales (2023) = 9.94%

The cash-to-sales ratio for 2023 has decreased to 8.46% compared to 9.94% in 2023. According to the acquisition strategy, we can assume that the company is not thinking of any new acquisitions in the future as they have not increased their cash reserves over 12 months.

Example #3-Tesla Inc.

(Image Source: Tesla Annual Report 2023)

The above extract from the financial statement of Tesla Inc. shows a cash and cash equivalent of $17,576.

Cash= $18144 million

Total assets= $62131 billion

Cash as % of Total Assets= 29.20%

Total Sales=$53823 million

Cash as % of Total Sales= 33.71%

Cash as a percentage of total assets is 29%. The company might be thinking of business acquisitions in the future as cash reserves are significantly higher according to industry standards. If the company is not thinking of an acquisition, it should invest in short-term or long-term investments to earn interest income.

Example #4- Walmart

(Image Source: Walmart Annual Report 2023)

The value of cash and cash equivalent balance with Walmart Inc. was $17,741 for the financial year 2023.

Cash= $252496 million

Total sales in 2023= $559151 million

Cash % of Total Sales (2023) = 45.15%

Total sales in 2023= $523964 million

Cash % of Total Sales (2023) = 48.19%

In both financial years, the percentage cash of total sales is significantly higher compared to industry standards. The company should invest in short-term or long-term investments for a certain proportion of it. They might lose an opportunity to earn interest income on extra cash Reserves.


Cash & Cash Equivalent = Sum of all Cash & Cash Equivalent Assets

It includes assets such as paper money, accounts, deposits, receipts, government bills, and more

It excludes government securities, loans, inventories, AR accounts, etc.

How to calculate it? – Excel Examples

You can download this Cash and Cash Equivalents Examples here – Cash and Cash Equivalents Examples

Example #1:

XYZ Ltd has the following items on its balance sheet for the financial year 2023,

Checking accounts = $10,000

Undeposited receipts = $7,500

Bank Certificate of deposit = $2,500

Treasury bills = $1,250

Prepaid expenses = $10,000

Inventory = $3,250

Calculate cash & cash equivalents.


As inventory and prepaid expenses do not count in cash & cash equivalents, we have,


Totalling all the values,

The value of cash and cash equivalent for XYZ Ltd is $21,250.

Example #2:

ABC Ltd wants to consider the following to calculate cash and cash equivalent,

Coins and paper money = $12,500

Money orders = $2,500

Bank Certificate of deposit = $3,000

Money market mutual funds = $4,500

Preferred stock = $6,500



Implementing the formula,

Types Bank Account:

Cash stored in the bank account is the best example for this discussion because it is one of the company’s most liquid assets and can help it repay its short-term obligations.

It is money in the form of currency, coins, and notes.

A demand deposit plays a role here. It is an account from which one can withdraw funds at any point in time without informing the business.

Foreign Currency:

Companies that have a lot of forex transactions may face certain exchange risks.

It is better to convert the currency to the reporting currency for financial reporting.

It also includes the gains made in the conversion mode. Still, any losses caused in the conversion mode are reported as “accumulated other comprehensive income.”

Cash Equivalents:

These investments can be easily converted to cash and must be short-term, usually with a maturity period of not more than three months or 90 days.

They must have high liquidity and can easily sell in the market.

The buyers of such an asset class must be easy to access.

Certificate of deposit:

A certificate of deposit can be a cash equivalent, provided the maturity date is less than 90 days.

Preferred equity shares can also be considered an example of a cash equivalent.

Treasury bills, commercial papers, and short-term bonds are examples of it.

What does Cash & Cash Equivalents Include?

Coins and paper money: Coins and paper money are easy to use and don’t require a bank account, but they can be lost or stolen more quickly than other forms of cash.

Checking accounts: They’re more secure than coins and paper money, but you’ll need a bank account to use them.

Money orders: Money orders are similar to checks, and they do not need a bank account to work.

Undeposited receipts: Undeposited receipts are also cash equivalent that does not require a bank account. However, they’re less common than other forms of cash.

Bank Certificate of deposit: Certificates with a maturity period of fewer than 90 days are an example of cash and cash equivalent.

Commercial papers: Commercial papers issued by corporations are also considered cash equivalents.

Treasury bills: It is a government backup security with a high level of liquidity.

Money market mutual funds: Money market mutual funds are a type of investment fund that invests in short-term debt instruments, such as government bonds, corporate bonds, and commercial paper.

Preferred stock: Preferred stockholders typically have priority over common stockholders when it comes to receiving dividends. They also have the right to receive their investment back before common stockholders.

What Does Cash & Cash Equivalents Not Include?

Securities or other investments: They are not cash equivalents as they are not as liquid as cash

Accounts receivable: As the company is yet to receive this amount, they cannot consider it cash

Credit cards and Loans: These are debt instruments that the company cannot count for cash equivalents

Prepaid expenses: As the companies have already made these payments, they cannot include them in the cash

Inventory: It is not cash equivalent because it is a physical asset that can fluctuate in value.

Difference Between Cash & Cash Equivalents


Cash Equivalents

It is a currency that is physically in your possession An investment that can quickly convert into cash

It includes cash, receipts, bank accounts, etc Includes money market funds, short-term commercial paper, and Treasury bills.

It is subject to theft and loss, so it is not as safe as cash equivalents. These are less risky than other investments since they are short-term and highly liquid.

Cash & Cash Equivalents IFRS

Under IFRS, cash includes physical cash on hand, demand deposits, and short-term investments readily convertible to known amounts of money and subject to an insignificant risk of change in value.

To be classified as a cash equivalent under IFRS, an investment must be:

Readily convertible to known amounts of cash

Subject to an insignificant risk of change in value.

Examples of investments that typically meet these criteria are short-term, highly liquid investments such as commercial paper and Treasury bills. The requirements for classification intend to ensure that only genuinely short-term and low-risk assets are in this category.


It offers the highest level of liquidity available to the management of the company The company may misuse the excess balance

It can help repay short-term obligations and other operating expenses Too much cash may resemble that company is not paying dividends to its shareholders

A company with a healthy balance is perceived to perform well and manage its resources Retaining cash & cash equivalents doesn’t fetch a reasonable interest rate which means that the investment is reaping a loss

This component significantly influences the company’s valuation during mergers and acquisitions. In business handling, a lot of cash in foreign exchange may eventually lead to an exchange loss while converting it to the reporting currency.

Final Thoughts

Cash & cash equivalents are essential components of a balance sheet and resemble a company’s financial health. It helps pay off short-term obligations very quickly without any need for borrowing. It is also essential for the shareholders as it can pay them dividends.

Frequently Asked Questions (FAQs) Q1. What is the definition of cash & cash equivalents in accounting?

Answer: In accounting, it refers to the short-term investments that a company has made that are readily convertible to cash. It could include investments in money market funds, short-term bonds, and commercial paper.

Q2. How to audit cash & cash equivalents?

Answer: When auditing cash & cash equivalents, there are key things to remember. First, always obtain an unqualified opinion on the financial statements. Second, focus on risk areas such as receivables and payables. Finally, make sure to test for compliance with internal controls.

Q3. What are restricted cash & cash equivalents?

Answer: These are funds that a company sets aside for a specific purpose. They do not use it for general corporate expenses. The most common type of restricted cash is held in escrow to secure a loan or lease agreement. Other types of restricted cash may include money set aside to pay taxes, insurance premiums, or employee bonuses.

Q4. How do the changes in the exchange rate affect cash & cash equivalents?

Answer: When a country’s currency Exchange rate changes, the value of cash & cash equivalents also changes. For example, if the US dollar weakens against the euro, then a US company with money in euros will see the value of its cash increase when translated back into US dollars.

Conversely, if the US dollar strengthens against the euro, the value of cash held in euros will decrease when translated back into US dollars. The change in the exchange rate can also have an indirect effect on it.

Q5. What are the uses of cash & cash equivalents for a business?

Answer: Businesses primarily use cash to purchase assets or make investments. It signifies that the company has enough money to meet its short-term obligations, like payroll, rent, and utilities. It is generally a buffer against unexpected expenses. For instance, if a company has future bills, it saves money in cash equivalents.

Cash And Cash Equivalents Video

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Top 5 Ways To Reload Your Cash App Card

The digital payment service Cash App works a lot like Venmo or PayPal, allowing you to send and receive money. You can also use your Cash App card to pay for goods or services online and in stores, anywhere Visa is accepted.

Your card is connected to your Cash App balance, so you’ll need to reload it to ensure you have funds available to spend. If you’re wondering, “Where can I reload my Cash App card?” keep reading. Below, we’ll explain the top five ways to reload a Cash App card.

Table of Contents

How to Reload a Cash App Card From Linked Bank Account/Debit Card

The easiest and fastest way to reload your Cash App card is to transfer funds from your bank account or linked debit card. To do this, you need to link your bank account or debit card to the app. Here’s how to do that:

Launch Cash App.

Select your


icon at the top right.

Scroll down and select

Linked Banks



Link Debit Card

and follow the on-screen prompts to add a bank account/debit card.

When you’ve added your information, select

Link Card

to confirm.

Once your bank account or debit card is linked to Cash App, you can transfer money from your account or card via Regular Transfer, which takes one to two days, or Instant Transfer, which takes just a few minutes but incurs a fee.

Here’s how to add cash to your Cash App card:

Launch Cash App and select the


tab at the bottom left.


Add Cash


Choose the amount you wish to transfer to your Cash App account.




Enter your PIN or use Touch ID to confirm.

How to Reload Cash App Card via Recurring Deposit

If you’d prefer to not have to worry about running out of available funds on your Cash App card, you can set up a recurring deposit from your bank account on a specific day of the month. For example, you might set it up after your payday, so you’ll always have a balance available to spend. Here’s how to reload Cash App card using recurring deposit:

Launch Cash App and select the


tab at the bottom left.


Deposits & Transfers

Scroll down and select



Ensure the toggle above Auto Add Cash is turned on.

When asked “

How often would you like to add cash?

” select




, or



On the next screen you’ll be asked “On which day would you like to add cash?” Select the day, time, or date according to your preference.

Now enter the amount of cash you’d like to add and select



The app will ask you to confirm changes using Touch ID or enter your PIN.

Note: Setting up recurring deposits to your Cash App account is free.

How to Reload Cash App Card by Requesting Money From Friends and Family

Just as you can with PayPal, you can request money from other people, such as friends and family, to reload your Cash App card. Again, it’s quick and easy to do — just follow these steps.

Launch Cash App.

Enter the amount of money you’d like to request.




In the


field, fill out the details of the person you’re requesting money from, such as their email address, phone number, or £Cashtag.

In the


field, you can also add an (optional) note to explain what the funds are for and why you’re requesting them.



at the top right to send your request.

Reloading Your Cash App Card at a Store

If you’d rather go to a store to reload your Cash App card, you’ll find many grocery stores, retail stores, and pharmacies that will allow you to do so, such as Target and Walmart. So, find a participating store and head for the customer service counter.

At the store, let the cashier know you’d like to reload your Cash App card using your QR code.

Open Cash App.

Select the


symbol at the top left.


My Code

at the bottom.

Show the QR code to the cashier for them to scan.

Hand them the cash you wish to add to your Cash App account.

The funds should be added to your account automatically, but it’s best to keep hold of the receipt in case the Cash App is not working.

Note that there’s a small fee charged for reloading your Cash App card in-store. The Cash App website has a list of participating retailers.

Can you Reload Cash App Card at an ATM?

Unfortunately, reloading your Cash App Card at an ATM is not possible. However, you can withdraw from an ATM using your card, though you’ll pay a fee per transaction.

How to Reload Cash App Card Via Referrals

Cash App operates a referral program that will pay you for any referrals you make. You can earn up to $15 for each friend you refer. Once they’ve signed up, they must make a qualifying transaction before you receive the referral fee.

To refer friends, open Cash App and select your


icon at the top right.


Invite Friends


On the next screen, you can either choose

Allow & Continue

to allow Cash App to access your Contacts, or select


to deny access and manually enter a contact’s information.

In the


field, enter your friend’s phone number or email address.


Send Invite

to send the referral.

As you can see, there are several easy ways to reload your Cash App card, whether you prefer to head to your nearest store and top up your account in cash or request money from friends and family to pay bills.

Histogram In Excel (Types, Examples)

Histogram in Excel

Histogram Chart in Excel is a data analysis tool used to show the periodic rise and drop in the data with the help of vertical columns. We can find the Histogram chart option if we use Excel 2023. Still, for the older version of MS Excel, such as 2013 and 2010, we need to find this option in the Data Analysis option, which is available under the Data Analysis option.

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Uses of Histogram Chart in Excel

A histogram is a graphical representation of the distribution of numerical data. A histogram is a column chart that shows the frequency of data in a certain range in a simpler way. It provides the visualization of numerical data by using the number of data points that fall within a specified range of values (also called “bins”).

A histogram chart in Excel is classified or made up of 5 parts:

Title: The title describes the information about the histogram.

X-axis: The X-axis is the grouped interval that shows the scale of values in which the measurements lie.

Y-axis: The Y-axis is the scale showing the times the values occurred within the intervals corresponding to the X-axis.

The bars: This parameter has a height and width. The height of the bar shows the number of times the values occurred within the interval. The width of the bars shows the interval or distance, or covered area.

Legend: This provides additional information about measurements.

Why is the histogram chart important in Excel?

There are many benefits to using a Histogram chart in Excel.

The histogram chart shows the visual representation of data distribution.

A histogram chart displays a large amount of data and the occurrence of data values.

Easy to determine the median and data distribution.

Types/Shapes of Histogram Chart

It depends on the distribution of data; the histogram can be of the following type:

Normal Distribution

A Bimodal Distribution

A Right Skewed Distribution

A Left Skewed Distribution

A Random Distribution

Now we will explain the shapes of the Histogram chart in Excel.

Normal Distribution:

A Bimodal Distribution:

There are two peaks. This is also called Double peaked distribution in this dist. Under this distribution in one data set, the results of two processes with different distributions are combined. The data is separated and analyzed like a normal distribution. This looks like the below image:

A Right Skewed Distribution:

In this distribution, a large number of data values occur on the left side and a fewer number of data values on the right side. This is also called a positively skewed distribution. This distribution occurs when the data has a range boundary on the left-hand side of the histogram. For example, a boundary of 0. This dist. It looks like the below image:

A Left Skewed Distribution:

This is also called a negatively skewed distribution. In this distribution, a large number of data values occur on the right side and a fewer number of data values on the left side. This distribution occurs when the data has a range boundary on the right-hand side of the histogram. For example, a boundary such as 100. This dist. It looks like the below image:

A Random Distribution:

This is also called a multimodal distribution. In this dist., several processes with normal distributions are combined. This has several peaks; thus, the data should be separated and analyzed separately. This dist. It looks like the below image:

Where is the Histogram Chart found in Excel?

The histogram chart option is found under Analysis ToolPak. The Analysis ToolPak is a Microsoft Excel data analysis add-in. This add-in is not loaded automatically on Excel. Before using this, we need to load it first.

Steps to load the Analysis ToolPak add-in:

This will open the below Add-Ins dialog box.

This will open an Add-Ins dialog box.

The Analysis ToolPak is loaded in excel now and will be available under the DATA tab with the name Data Analysis.

How to Create a Histogram Chart in Excel?

Before creating a histogram chart in Excel, we must create the bins in a separate column.

Bins represent the intervals into which we want to group the data set. These intervals should be consecutive, non-overlapping, and of equal size.

There are two ways to create a histogram chart in Excel:

If you are working on Excel 2023, there is a built-in histogram chart option.

If you are working on Excel 2013, 2010, or earlier versions, you can create a histogram using Data Analysis ToolPak.

Creating a Histogram chart in Excel 2023:

Excel 2023 adds a histogram chart option as an inbuilt chart under the chart section.

Select the entire dataset.

The histogram chart would appear based on your dataset.

Creating a Histogram chart in Excel 2013, 2010, or earlier version:

Download the Data Analysis ToolPak as shown in the above steps. You also can activate this ToolPak in Excel 2023 version too.

Examples of Histogram Chart in Excel

You can download this Histogram Chart Excel Template here – Histogram Chart Excel Template

Example #1

Let’s create a dataset of scores (out of 100) of 30 students as shown below:

For creating a histogram, we need to create the intervals at which we want to find the frequency. These intervals are called bins. 

Below are the bins or score intervals for the above data set.

Please follow the below steps to create the Histogram chart in Excel: 

A Histogram dialog box will open.

In the Histogram dialog box, we will enter the following details:

Select the Input Range (as per our example – with the scores column B)

Select the Bin Range ( Intervals column D)

This would create a Frequency Distribution table and the Histogram chart in the specified cell address.

There are below points that need to keep in mind while creating Bin’s or Intervals:

The First bin includes all the values below it. For bin 30, frequency 5 includes all the scores below 30.

The last bin is 90. This bin includes any data values which are higher than the last bin. In our example, 3 values are higher than the last bin, 90. If the values are higher than the last bin, Excel automatically creates another bin – More.

This chart is called a static histogram chart. If you want to change the source data, you must create the histogram again.

You can do the formatting of this chart like other charts.

Example #2

Let’s take another example with 15 data points which are the salary of a company.

Now we will create the bins for the above dataset.

For creating the histogram chart in Excel, we will follow the same steps as in example 1.

It will open a histogram dialog box.

Select the Input Range with the Salary data points.

Select the Bin Range with the bins column.

The below chart will appear as follows:


The First bin, $25,000, will include all data points less than this value.

The last bin, More, will include all the data points over $65,000. It’s created automatically by Excel.


The histogram is very useful while working with a large amount of data.

A histogram chart shows the data in a graphical form that is easy to compare and understand.


Histogram chart is very difficult to extract the data from the input field in the histogram. It means difficult to point out the exact number.

While working with histograms, it creates a problem with multiple categories.

Things to Remember About Histogram Charts in Excel

A histogram chart uses for continuous data and determines the range of data with the bin.

The bins are usually determined as consecutive and non-overlapping intervals.

The bins must be adjacent and are of equal size (but are not required to be).

If you are working with Excel 2013, 2010, or earlier versions, you must activate the Excel Add-Ins for Data Analysis ToolPak.

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Types And Purpose Of Derivative

Definition of Derivative

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Purpose of Derivatives

The various purpose of entering into derivative contracts is as under:

Earning Profits: The main aim to enter into the derivative contract is to earn profits by doing speculation on the price of an underlying asset in the future. The market price where securities are traded is volatile where the shares may go up or down. When there is a fall in the share price you may suffer loss and in this situation entering into a derivative contract by placing the accurate bet may help in earning gains.

Arbitrage Advantage: Arbitrage trading involves a purchase of security in one market at a low price and then selling the same in the other market at a higher price. The difference between the selling price and the buying price will be the profit of the trader.

To Get Access to Unavailable Markets or Assets: The derivatives help the traders or organizations to get access to the markets or assets that are otherwise not available. For example, interest rate swaps can provide a more favorable rate of interest as compared to the direct borrowings.

Types of Derivatives 1. Futures

Futures are the financial derivatives in which legal agreements are being entered so as to buy or sale a particular derivative stock at the predefined price at the agreed time in the future. Future contracts in order to facilitate its trading over the exchange are standardized. It is the obligation of the buyer to buy the underlying assets upon the expiry of the contract. On the other hand, it is the seller obligation of providing and delivering the underlying asset to the buyer upon expiry of the contract. It allows the investor in speculating in the line of movement of the corresponding underlying stock. It can be used as a tool to hedge the losses which may happen in stock by entering into future agreement long or short depending on the position of stock held. Futures and future contracts refer to the same thing. The contracts are supposed to be compulsorily squared off on or before the expiry date. If anyone wants to continue the same position even after the expiry date, they can roll over the transaction with the new expiry date.

2. Options

The option is a kind of contract that provides a right but not an obligation to purchase/sell an underlying security at a predetermined price (strike price) and during the specified time period. The buyer of the option is required to pay the premium in order to purchase the right from the seller whereas the seller, also known as the option writer, who receives the premium amount, is under the obligation to sell the underlying security if the right is exercised by the buyer. Options are traded on both over counter market and exchange-traded markets. There are two types of options namely call option and put option. The call option is up side betting and no risk for down fall apart from premium paid loss. In the same line put option is down side betting and no risk for upward movement apart from the premium paid loss. The options may be bought or laid depending upon the risk appetite of the investor. If option is bought, it is subjected to maximum risk up to the premium paid amount and the profit bracket is unlimited. If the options are being laid or sold, the maximum profit will be the premium paid amount and is subjected to unlimited risk.

3. Forwards 4. Swaps

A swap is a derivative contract between the two counter parties to exchange the financial instrument or payments or cash flows for a certain time. The underlying instrument to this contract can be anything but in maximum cases, it is involved with cash based on a notional principal amount. Every stream of the cash flow is known as leg. This can be used in hedging the risk and minimizing the uncertainty of certain operations. It is traded over the counter and not in exchange. The default risk in the counter party in the swap contracts is very high and thus it is majorly opted by the financial organizations and the companies. The most popular type of swap includes interest rate swap, currency swap, commodity swap, credit default swap.

Conclusion – Derivative Types

Thus, derivatives are the financial contracts whose value is derived from any underlying asset including stocks, bonds, currencies, market indices etc. the value of underlying asset keeps on changing as per the conditions of the market and the main aim of the derivatives is to make profits by speculating on the value of the given asset in future.

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3 Types Of Postgresql Integer With Examples

Introduction to PostgreSQL Integer

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Types of PostgreSQL INTEGER

Consider the following table, which illustrates the types of the integer:

Name Storage Size Min Max

SMALLINT 2 bytes -32, 768 +32, 767

INTEGER 4 bytes -2, 14, 74, 83, 648 +2, 14, 74, 83, 647

BIGINT 8 bytes -92, 23, 37, 20, 36, 85, 47, 70, 000 +92, 23, 37, 20, 36, 85, 47, 70, 000


Let us consider all types one by one with some examples:


The storage size required for the PostgreSQL SMALLINT data type is 2 bytes. PostgreSQL allows the SMALLINT data type to store values that are within the range of ( -32,767, 32,767 ). The PostgreSQL SMALLINT data type can store 16-bit integer data.

Consider the following example where we can use the PostgreSQL SMALLINT integer data type for storing values such as the count of students and the count of the teacher in a department. Consider the following table named ‘department’, which will store the number of students, and the number of the teacher in a department.

CREATE TABLE department ( department_id SERIAL PRIMARY KEY, department_name VARCHAR ( 255 ) NOT NULL, );

Explanation: In the above example, we have added students_count and teachers_count columns with data type as the PostgreSQL SMALLINT. We must need at least one student and one teacher to form any department. So we have defined the CHECK constraint on the students_count and teachers_count columns.


The storage size required for the PostgreSQL INTEGER data type is 4 bytes. PostgreSQL allows the INTEGER data type to store values that are within the range of ( -2,147,483,648, 2,147,483,647 ) or ( -2^31 to 2^31 -1 (2 Gb) ). The PostgreSQL INTEGER data type is often used as it gives the best performance, range, and storage size. The PostgreSQL INTEGER data type can be used as INT, INTEGER, and INT4. The INTEGER data type can store 32-bit integer data.

Consider the following example where we can use the INTEGER data type for storing values which are big numbers such as the count of students in the university or the count of the teacher in the university.

Consider the table named ‘university’, which will store the number of students and the number of the teacher in a university using the CREATE TABLE statement.

CREATE TABLE university ( university_id SERIAL PRIMARY KEY, university_name VARCHAR ( 255 ) NOT NULL, );

Explanation: In the above example, we have added students_count and teachers_count columns with data type as INT.


The storage size required for the BIGINT data type is 8 bytes. PostgreSQL allows the BIGINT data type to store values which are within the range of ( -9,223, 372, 036, 854, 775, 808, + 9,223, 372, 036, 854, 775, 807 ) or ( -2^63 to 2^63 -1 ) which means the BIGINT type can store any number. The BIGINT data type is used to store the very big numbers which are out of the storage scope of the PostgreSQL INTEGER data type, such as the unpredictable value storage like memory required by any server. The PostgreSQL BIGINT data type might affect the system’s performance, so we should use BIGINT type if there is a valid reason to use it. The PostgreSQL BIGINT data type can store 64-bit integer data.


We hope from the above article you have understood the PostgreSQL INTEGER data type and the types of the PostgreSQL INTEGER data type such as SMALLINT, INTEGER, and BIGINT, etc. Also, we have added several examples of PostgreSQL INTEGER data types to understand it in detail.

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Types And Structure Of Delaware Corporation

Introduction to Delaware Corporation

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Delaware corporations are very famous in the US because of the business-friendly laws to which they are subjected, and almost half of the Standard & Poor’s 500 rated are present in Delaware. Finance companies, to be specific, are very popular here because of the higher charge of interest on loans that they charge from their customers, and Delaware corporations are allowed to do so. Delaware corporation rules give lenders greater freedom to charge higher interest on loans.

Types of Delaware Corporation

The different types of Delaware corporations are as follows:

1. Limited Liability Company

A Delaware LLC is registered with the specific Certificate of Formation with the Delaware Secretary of State. These corporations have meager start-up fees and a friendly tax rate. This setup offers the owners or members protection of their assets against liability or creditors, which means members are not responsible for liability more than the initial investment one has put into the LLC.

2. Limited Partnership

A Delaware Limited partnership firm includes more than one member or partner. General partners’ duties include general management function, and one or more members should be the ones who will not participate in the management function and are termed, limited partners. To conduct business, one has to obtain a Certificate of limited partnership from the Delaware Division of Corporations. General partners are responsible or liable for any financial obligations of the firm, whereas limited partners have no liability towards the firm’s debt or obligations.

3. S-Corporation

Delaware S-corporation is an entity that doesn’t pay federal taxes. An S-Corp needs to firm form a Delaware general or close corporation and then file for Form 2553 with the IRS. The IRS, upon approval, won’t tax such a corporation, but the tax liability will be passed to each shareholder by their proportionate ownership of the company.

4. Non-Profit Corporation 5. General Corporation

This is called C-Corp and is generally formed when the company plans to go public or IPO. This corporation is formed to lure in venture capital investments. The shareholders are the company owners but don’t contribute to managing the company.

6. Close Corporation

A Delaware close corporation is where shareholders, management, directors, and officers are the same people and are organized into a small, closed group. A closed corporation cannot have more than 30 shareholders. The closed corporation operates with all legal protection that a corporation enjoys.

7. Public Benefit Corporation

The public benefit company makes it mandatory to act ethically regarding society and the environment. The company is formed the same way a Delaware corporation is formed to ensure it works for the common public benefit.

Structure of Delaware Corporation

The Delaware Corporation primarily has three levels or tiers:

Shareholders: They are generally considered to be the firm’s owners and are responsible for all significant decisions. They are the ones who own the shares of the corporation. These shareholders have power over the company’s common stock and voting rights to elect the board of directors.

Directors: Directors are elected by owners or shareholders of the firm and are responsible for making significant decisions. They oversee the company and make critical managerial decisions.

Officers: Officers are elected by directors and look over the day-to-day management of the corporation. They are generally the “President” of the firm or “Treasurer.”

Difference between Delaware Corporation vs LLC

The Delaware Corporation or C-Corp requires a board of directors for its management, whereas an LLC doesn’t need it. LLC can be managed even by a single owner and doesn’t follow a hierarchical management structure. The prime difference arises in the governance structure. In the case of C-Corp, the management comprises three levels: shareholders, directors, and officers. In contrast, in the case of an LLC, there is a legal agreement called the operating agreement, which is a contract between all the members of the LLC.

Second is the ground of federal taxation. A Corporation has three choices of taxation, i.e., C-Corp, S-Corp, and Tax-exempt. In contrast, when it comes to LLC, there are only two choices, i.e., IRS considers a single member firm as a disregarded entity and a multi-member firm as a partnership agreement. The last and final grounds of difference can be based on privacy. A corporation requires providing the names and addresses of all directors in its annual statement, whereas an LLC has to provide very minimum information. It doesn’t have to give its members’ names and addresses.


Delaware Court of Chancery has high grounds of respect and is very well established. In any litigation, one gets a very experienced lawyer to resolve the problem.

The corporation’s structuring can be done quickly because Delaware laws are very business-friendly.

Delaware involves greater privacy as it doesn’t call upon declaring the names and addresses of directors.

Investors have the high ground of faith in Delaware Corporations, and thus these corporations are also investor-friendly.

Delaware has business-friendly taxation policies, which benefit the business operating under its umbrella.

One demerit can be if a business is doing business there but not headquartered in Delaware; it has to pay or follow the tax structure of both states of Delaware and the state where it is headquartered.

One has to bear additional fees to do business in Delaware.

Delaware Corporation requires additional annual reporting documents in addition to the state where a business may be headquartered.

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