Cash equivalents would not include short-term investments in
A) money market funds.
B) available-for-sale securities.
C) commercial paper.
D) certificates of deposit.

Question

Quizplus · Accepted Answer

Cash equivalents include 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 because of changes in interest rates. Available-for-sale securities do not meet these criteria as they can include longer-term investments and are subject to market fluctuations.

Cash Equivalents Would Not Include Short-Term Investments in