Cash equivalents include
A) checks
B) coins and currency
C) money market accounts and commercial paper
D) stocks and short-term bonds

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid investments that can be easily converted into cash. Money market accounts and commercial paper are examples of cash equivalents because they are short-term, highly liquid investments that can be easily converted into cash. Checks, coins and currency are not considered cash equivalents. Stocks and short-term bonds are not highly liquid and may require more time to be sold and converted into cash, making them not considered cash equivalents.

Cash Equivalents Include