Cash equivalents would include:

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid investments that can be easily converted into cash and have a maturity date of less than three months from the date of purchase. Debt instruments with maturity dates of less than three months fit this criteria and are considered cash equivalents. Highly liquid equity securities may be easily convertible to cash, but are not considered cash equivalents. Accounts receivable from a financial institution and a sinking fund for bonds that mature in three years are not considered cash equivalents.

Cash Equivalents Would Include