A typical example of a cash equivalent is an investment in:
A) Treasury stock
B) Commercial paper
C) Stock of other companies selling on an exchange
D) All of the above

Question

Quizplus · Accepted Answer

Commercial paper is considered a cash equivalent because it is a short-term, highly liquid investment with a maturity date of less than three months when purchased, making it easily convertible to known amounts of cash.

A Typical Example of a Cash Equivalent Is an Investment