Cash equivalents would include:

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid investments that are easily convertible into cash and have a maturity date of less than three months from the date of purchase. Therefore, debt instruments with maturity dates of less than three months from the date of purchase would be considered cash equivalents. Highly liquid equity securities, accounts receivable, and restricted funds for bonds that mature in three years do not meet the criteria for being considered cash equivalents.

Cash Equivalents Would Include