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 are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. They do not include accounts receivable or investments in shares, and they are not reported as non-current assets.

Cash Equivalents