Highly liquid short-term investments that are easily convertible into cash are called:
A)trading securities.
B)cash equivalents.
C)current assets.
D)accounts receivable.

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid short-term investments that are easily convertible into cash. Trading Securities are securities that a company intends to sell in the short-term to make a profit. Current assets include all assets that can be expected to be converted to cash within one year. Accounts receivable are amounts owed to the company by its customers and are not necessarily easily convertible to cash.

Highly Liquid Short-Term Investments That Are Easily Convertible into Cash