Asked by
Marco Martinez
on Nov 14, 2024Verified
Cash equivalents
A) include all investments in shares.
B) include short-term, highly liquid trading investments plus accounts receivable less any bank overdrafts.
C) include short-term, highly liquid trading investments less any bank overdrafts.
D) are reported as non-current assets.
Highly Liquid
Assets that can be easily and quickly converted into cash without significant loss in value.
Trading Investments
Securities purchased and held primarily for selling them in the near term with the goal of generating short-term profits.
Bank Overdrafts
Happens when the amount taken out of a bank account surpasses what is in the account, leading to a negative balance.
- Comprehend the meaning and elements of cash equivalents.
Verified Answer
AK
Learning Objectives
- Comprehend the meaning and elements of cash equivalents.