Treasury bills and commercial paper are both considered to be cash equivalents and are normally included in the cash holdings on a firm's balance sheet.

Question

Quizplus · Accepted Answer

Both Treasury bills and commercial paper are short-term, highly liquid financial instruments that are easily convertible to cash and have minimal risk of price fluctuations, making them suitable to be classified as cash equivalents on a firm's balance sheet.

Treasury Bills and Commercial Paper Are Both Considered to Be