Which one of the following would never be considered a cash equivalent?
A)U.S. Treasury bills
B)corporate commercial paper
C)money market funds
D)common stock issued by a corporation

Question

Quizplus · Accepted Answer

Common stock issued by a corporation is not considered a cash equivalent because it represents ownership in a company and its value is subject to market fluctuations. Cash equivalents are highly liquid assets that can be converted into cash quickly and with minimal risk of loss in value. U.S. Treasury bills, corporate commercial paper, and money market funds are all examples of cash equivalents.

Which One of the Following Would Never Be Considered a Cash