Which of the following is NOT included in cash and cash equivalents on a company's balance sheet?

Question

Quizplus · Accepted Answer

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. A bank certificate of deposit for one year does not qualify as a cash equivalent because it typically cannot be withdrawn without penalty for a year, making it less liquid than the other options listed.

Which of the Following Is NOT Included in Cash and Cash