Cash equivalents have each of the following characteristics except:
A) Little risk of loss.
B) Highly liquid.
C) Maturity of at least three months.
D) Short-term.

Question

Quizplus · Accepted Answer

Cash equivalents are financial instruments that can be easily converted into cash within a short period, typically within three months or less. However, there is no requirement for cash equivalents to have a specific maturity period of at least three months. The other characteristics of cash equivalents are that they have little risk of loss and are highly liquid, meaning they can be quickly and easily converted into cash without significant loss of value.

Cash Equivalents Have Each of the Following Characteristics Except