Inventory is considered to be a cash equivalent.

Name: Inventory is considered to be a cash equivalent.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inventory is not considered a cash equivalent because it cannot be easily and immediately converted into cash without significant value loss or time delay. Cash equivalents include highly liquid assets such as money market accounts, Treasury bills, and commercial paper that can quickly and easily be converted into cash.

Inventory Is Considered to Be a Cash Equivalent