Question

What are Cash Equivalents?

a.

Long-term investments for future growth

b.

Highly liquid investments subject to significant value changes

c.

Investments held for long-term purposes

d.

Short-term, highly liquid investments with insignificant value changes

Posted under IC 89 Management Accounting

Answer: (d).Short-term, highly liquid investments with insignificant value changes Explanation:Cash equivalents are described as short-term, highly liquid investments that are readily convertible into known amounts of cash and have an insignificant risk of changes in value.

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