Cash equivalents on the balance sheet include certificates of deposit with maturities of 90 days or more.

Question

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Cash equivalents on the balance sheet typically include highly liquid and easily convertible short-term securities with maturities of less than 90 days, such as treasury bills, commercial paper, and money market funds. Certificates of deposit with maturities of 90 days or more may be classified as short-term investments instead of cash equivalents.

Cash Equivalents on the Balance Sheet Include Certificates of Deposit