Cash equivalents meet all of the following criteria except:
A)Are readily convertible to a known cash amount.
B)Include short-term investments purchased within 3 months of their maturity dates.
C)Have a market value that is not sensitive to interest rate changes.
D)Include short-term U.S.treasury bills.
E)Are more liquid than cash.

Question

Quizplus · Accepted Answer

Cash equivalents are not more liquid than cash; they are highly liquid but not more so than cash itself.

Cash Equivalents Meet All of the Following Criteria Except