Cash equivalents
A)include all investments in shares.
B)include short-term, highly liquid trading investments plus accounts receivable less any bank overdrafts.
C)include short-term, highly liquid trading investments less any bank overdrafts.
D)are reported as non-current assets.

Question

Quizplus · Accepted Answer

Cash equivalents include short-term, highly liquid investments that are readily convertible to known amounts of cash and so close to their maturity that they present insignificant risk of changes in value because of changes in interest rates. They do not include all investments in shares (which can fluctuate in value and may not be highly liquid), accounts receivable (which are not investments), or are reported as non-current assets (since they are considered current assets due to their high liquidity and short-term nature).

Cash Equivalents