A cash equivalent is an investment that:
A) Is within 3 months of its maturity date.
B) Is readily convertible to a known amount of cash.
C) Is highly liquid.
D) Is subject to an insignificant risk of changes in value.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

Cash equivalents are investments that are short-term (within 3 months of maturity), highly liquid, readily convertible to known amounts of cash, and subject to an insignificant risk of changes in value.

A Cash Equivalent Is an Investment That