A cash equivalent is a short-term, highly liquid investment that is readily convertible into known amounts of cash andGroup of answer choicesIs acceptable as a means to pay current liabilities.Has a current market value that is greater than its original costBears an interest rate that is at least equal to the prime rate of interest at the date of liquidationIs so near its maturity that it presents insignificant risk of changes in value because of the changes in market interest rate. Flag question: Question 11Question 11Tips

An investment that is readily convertible to a known amount of cash and that is sufficiently close to its maturity date so that its market value is unaffected by interest rate changes is a(n):Multiple ChoiceOperating activity.Cash equivalent.Cash dividend.Common stock.Financing activity.

Which of the following is not an example of cash and cash equivalents?Group of answer choicesCash on hand, i.e. notes and coins.Bank overdraft.Money market deposit with 5 months to maturity.Investments with less than 3 months to maturity.

All of the following are considered cash equivalents except:Multiple ChoiceMarketable securities.Money market funds.Commercial paper.Treasury bills.

Which of the following is considered a cash equivalent?a) Stocks b) Money market funds c) Corporate bonds d) Real estate

Which of the following would not be classified as ‘cash and cash equivalents’?Accounts receivableShort-term depositsCash at bankPetty cash