Cash equivalents do not include
A) short-term corporate notes.
B) treasury bills.
C) money market funds.
D) 2-year certificates of deposit.

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid investments that can be easily converted into cash without any significant loss of value. 2-year certificates of deposit may not be considered highly liquid and can potentially lose value if they are cashed out early. Thus, they are not considered cash equivalents.

Cash Equivalents Do Not Include