Cash equivalents
A) Include savings accounts
B) Include chequing accounts
C) Are short-term investments that a company invests their cash in to increase their earnings
D) Include savings and chequing accounts
E) All of the above

Question

Quizplus · Accepted Answer

Cash equivalents are short-term, highly liquid investments that are easily convertible to known amounts of cash and have original maturities of three months or less. Savings and chequing accounts are not considered cash equivalents.

Cash Equivalents