Which of the following would not be a cash equivalent?
A)A $10,000,30 day certificate of deposit.
B)500 shares of RIM shares.
C)A three-month Treasury bill.
D)A ten-year Treasury note purchased two months before maturity.

Question

Quizplus · Accepted Answer

Cash equivalents are usually short-term, highly liquid investments that are readily convertible into cash and have low risks of changes in value. 500 shares of RIM shares does not meet this criteria, making it not a cash equivalent. The other three options are all examples of cash equivalents.

Which of the Following Would Not Be a Cash Equivalent