Which of the following would not be considered a cash equivalent?
A)A 30-day certificate of deposit.
B)A ten-year treasury note purchased over nine years ago, which matures in two months.
C)A three-month Treasury bill.
D)A ten-year Treasury note purchased two months before maturity.

Question

Quizplus · Accepted Answer

A ten-year treasury note purchased over nine years ago is not considered a cash equivalent because it is not readily available for use as cash and has a longer maturity date. The other options (A, C, and D) are considered cash equivalents because they have a high degree of liquidity and can easily be converted into cash.

Which of the Following Would Not Be Considered a Cash