Which of the following would NOT be reported on the balance sheet as a cash equivalent?
A) money market fund
B) sixty-day guaranteed investment certificate
C) restricted funds for plant expansion in two years
D) three-month treasury bill

Question

Quizplus · Accepted Answer

Restricted funds for plant expansion in two years would not be reported as a cash equivalent on the balance sheet because cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, typically within three months or less. Restricted funds, especially those earmarked for a specific use in two years, do not meet these criteria.

Which of the Following Would NOT Be Reported on the Balance