Question

Cash equivalents:______.
A. Include savings accounts.
B. Include checking accounts.
C. Are readily converted to a known cash amount.
D. Include time deposits.
E. Have no immediate value.

Answer 1

Answer:

C. Are readily converted to a known cash amount.

Explanation:

Highly liquid short term assets are those which are ready available for conversion into cash. These are also called Liquid assets. Highly liquid investment are made for short term investment interest revenues.