Cash and cash equivalents include all of the following except
A)an investment purchased in March,2012 with a maturity of March,2014.
B)money market funds.
C)cash balance in a savings account.
D)cash balance in a checking account.
E)Treasury bills.

Question

Quizplus · Accepted Answer

An investment with a maturity of March, 2014 is not a cash or cash equivalent because it is not readily available for use in the near future. Cash and cash equivalents are defined as highly liquid assets that can be easily converted into cash within 90 days. The other options listed are all considered cash and cash equivalents.

Cash and Cash Equivalents Include All of the Following Except