Which of these are cash equivalents? Multiple choice question. Treasury bills that mature in 2 months Notes receivable that mature in 5 months US Treasury bonds that mature in 1 year Highly-liquid investments whose value is likely to change with original maturities of 3 months or less
Added by Amanda J.
Step 1
Step 1: Define cash equivalents — short‑term, highly liquid investments that are readily convertible to known amounts of cash and present an insignificant risk of changes in value; typically they have original maturities of three months or less. Show more…
Show all steps
Your feedback will help us improve your experience
Sanchit Jain and 98 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
For the following list of items, indicate if they are in $\mathrm{M} 1, \mathrm{M} 2$, or neither: a. Your $\$ 5,000$ line of credit on your Bank of America card b. $\$ 50$ dollars' worth of traveler's checks you have not used yet c. $\$ 1$ in quarters in your pocket d. $\$ 1200$ in your checking account e. $\$ 2000$ you have in a money market account
Anjali K.
Cash equivalents would include: a. prepaid expenses that were purchased with cash b. highly liquid investments that can be quickly converted to cash c. cash restricted for special purposes such as to repay debt in the future d. accounts receivable from customers
James K.
All of the following are considered fixed income investments except a. Preferred stock. b. Treasury bills, notes, and bonds. c. Certificates of deposit (CDs). d. Money market mutual funds. e. Corporate bonds.
Akash M.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD