Cash and cash equivalents include:
A) assets that have stable long-term value.
B) assets that are short-term, highly liquid, and are purchased within three months of maturity.
C) assets that consistently grow in value over the long run.
D) assets that are expected to be used up within a year.

Question

Quizplus · Accepted Answer

Cash and cash equivalents are short-term, highly liquid assets that can be easily converted into cash within three months or less. These assets are used for day-to-day operations and to cover short-term financial obligations. Examples include bank deposits, money market funds, and treasury bills.

Cash and Cash Equivalents Include