Cash equivalents could include each of the following except
A) bank certificates of deposit.
B) money market funds.
C) petty cash.
D) U.S. Treasury bills.

Question

Quizplus · Accepted Answer

Petty cash is not considered a cash equivalent since it is a small amount of cash on hand that is meant to cover minor expenses and is not easily convertible into cash or used for investing purposes. Bank certificates of deposit, money market funds, and U.S. Treasury bills are all examples of cash equivalents as they are highly liquid and have minimal risk of changes in value.

Cash Equivalents Could Include Each of the Following Except