AA
Answered
Explain the difference between cash and cash equivalents.
On Jul 24, 2024
Cash includes currency,coins,deposits in bank accounts,checking accounts,and savings accounts..Cash equivalents are short-term investments that meet the two specific criteria of being readily convertible to a known cash amount and being sufficiently close to maturity so that the market value is not sensitive to changes in interest rates.Examples of short-term investments include certificates of deposits and government treasury bills.