Investments in stocks or bonds of another company qualify as cash equivalents.

Question

Quizplus · Accepted Answer

Investments in stocks or bonds of another company are not considered cash equivalents because they typically cannot be quickly converted to cash without significant risk of losing value. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and so close to their maturity that they present insignificant risk of changes in value.

Investments in Stocks or Bonds of Another Company Qualify as Cash