What amount will be included in "cash and cash equivalents"? $$\begin{array} { | l | r | }
\hline \text { Treasury bills maturing in } 140 \text { days } & \$ 12,000 \
\hline \text { Investment in a money market fund } & 18,000 \
\hline \text { U.S. dollar bonds of a publicly traded company } & 10,000 \
\hline \text { Treasury bills maturing in } 30 \text { days } & 24,000 \
\hline
\end{array}$$

Question

What amount will be included in "cash and cash equivalents"? $$\begin{array} { | l | r | } 
\hline \text { Treasury bills maturing in } 140 \text { days } & \$ 12,000 \
\hline \text { Investment in a money market fund } & 18,000 \
\hline \text { U.S. dollar bonds of a publicly traded company } & 10,000 \
\hline \text { Treasury bills maturing in } 30 \text { days } & 24,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Cash and cash equivalents are highly liquid investments that can be easily converted into cash. In this case, Treasury bills maturing in 140 days and 30 days can be easily converted into cash within a very short period of time. The investment in a money market fund can also be easily converted into cash. Therefore, the total amount that will be included in cash and cash equivalents is $12,000 + $18,000 + $24,000 = $54,000. The U.S. dollar bonds of a publicly traded company cannot be easily converted into cash and therefore do not qualify as cash and cash equivalents.

What Amount Will Be Included in "Cash and Cash Equivalents