A cash equivalent is a current asset that:
A) will be converted to cash within one year.
B) will be converted to cash within one month.
C) is readily convertible into cash with a minimal risk.
D) is readily convertible into cash with a substantial risk.
E) none of these.

Question

Quizplus · Accepted Answer

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

A Cash Equivalent Is a Current Asset That