Cash equivalents would include investments in marketable equity securities as long as management intends to sell the securities in the next three months.

Question

Quizplus · Accepted Answer

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and so close to their maturity that they present insignificant risk of changes in value due to changes in interest rates. Marketable equity securities, regardless of management's intention to sell, do not qualify as cash equivalents because they are subject to market price fluctuations.

Cash Equivalents Would Include Investments in Marketable Equity Securities as Long