Cash and equivalents can consist of all of the following except
A)deposits in checking accounts
B)IOUs from customers
C)certificates of deposit (CDs)
D)U.S.Treasury notes

Question

Quizplus · Accepted Answer

Cash and equivalents typically refer to highly liquid assets that can be easily converted to cash. IOUs from customers are not considered highly liquid assets and cannot be easily converted to cash, therefore it is not included in cash and equivalents. Choices A, C, and D are all commonly included in cash and equivalents as they are highly liquid assets that are easily converted to cash.

Cash and Equivalents Can Consist of All of the Following