Cash equivalents generally would not include short-term investments in:
A)Commercial paper.
B)Certificates of deposit.
C)Held-to-maturity securities.
D)Money market funds.

Question

Quizplus · Accepted Answer

Held-to-maturity securities are not considered cash equivalents because they are investments with a fixed maturity date and therefore cannot be quickly and easily converted to cash without incurring penalty fees. Cash equivalents are short-term, highly liquid investments that can be easily converted to cash without significant risk of loss in value. Commercial paper, certificates of deposit, and money market funds are all examples of investments that are typically considered cash equivalents.

Cash Equivalents Generally Would Not Include Short-Term Investments In