Cash equivalents are long-term, unsecured but highly liquid assets that firms list in the fixed assets section on their balance sheet.

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Cash equivalents are short-term, highly liquid assets that can be easily converted into cash and are generally listed in the current assets section on the balance sheet. They are often considered part of a company's operating cash flow rather than fixed assets.

Cash Equivalents Are Long-Term, Unsecured but Highly Liquid Assets That