Which of the following descriptions DO apply to cash equivalents?

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid, meaning they can easily and quickly be converted into cash without significant loss in value. They are considered short-term investments that are easily accessible and can be used to cover immediate expenses or obligations. Cash equivalents do not typically rely on interest rate changes, as their value is already fixed, and they are not invested in fixed assets or considered long-term.

Which of the Following Descriptions DO Apply to Cash Equivalents