Cash equivalents meet all of the following criteria except:
A)Readily convertible to a known cash amount.
B)Short-term investments purchased within 3 months of their maturity dates.
C)Have a market value that is not sensitive to interest rate changes.
D)Short-term U.S.treasury bills.
E)More liquid than cash.

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid investments that are easily convertible into a known amount of cash, typically with original maturities of three months or less. They are not more liquid than cash itself, as cash is the most liquid asset.

Cash Equivalents Meet All of the Following Criteria Except