Some cash equivalents appear in the long term investment section of a balance sheet.

Name: Some cash equivalents appear in the long term investment section of a balance sheet.
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Question

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Cash equivalents are considered short term assets as they can be easily converted to cash within a short period of time, usually less than three months. Therefore, they should appear in the current assets section of a balance sheet, not in the long term investment section.

Some Cash Equivalents Appear in the Long Term Investment Section