Cash equivalents do not include
A) U.S.Treasury bills.
B) money market accounts.
C) long-term investments.
D) short term corporate notes.

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid and can be easily converted into cash. They have a short-term maturity of three months or less. Long-term investments, which have a maturity period of more than three months, cannot be considered cash equivalents. Options A, B, and D are all examples of cash equivalents.

Cash Equivalents Do Not Include