Asked by Brianna Austin on Jun 22, 2024
Verified
Cash equivalents are short-term highly liquid investment assets that are readily converted to a known cash amount,and have maturities of one year.
Cash Equivalents
Short-term, highly liquid investments that are easily convertible into known amounts of cash with original maturities of three months or less.
Highly Liquid
Describes assets that can be quickly and easily converted into cash with minimal impact on their value.
- Identify various types of cash and equivalent cash assets.
Verified Answer
CJ
Casey JohnsonJun 27, 2024
Final Answer :
False
Explanation :
Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.
Learning Objectives
- Identify various types of cash and equivalent cash assets.