Which one of the following is not a cash equivalent?
A) 30-day certificate of deposit
B) 60-day commercial paper
C) 90-day U.S.treasury bill
D) 180-day note issued by a local or state government

Question

Quizplus · Accepted Answer

A cash equivalent is an investment that can be easily converted into cash within 90 days or less. Choices A, B, and C all have maturities of 90 days or less, making them cash equivalents. Choice D has a maturity of 180 days, meaning it cannot be easily converted into cash within 90 days, and therefore is not a cash equivalent.

Which One of the Following Is Not a Cash Equivalent