Cash equivalents, such as highly liquid investments that can be converted into a specific amount of cash, are currently reported with cash on the statement of financial position.

Question

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This statement is true. Cash equivalents are highly liquid investments that can be easily converted into cash and are reported together with cash on the statement of financial position. Examples of cash equivalents can include treasury bills, money market funds, and certain types of short-term commercial paper.

Cash Equivalents, Such as Highly Liquid Investments That Can Be