Explain cash equivalents?

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Cash and cash equivalents refer to the line item on the balance sheet that reports the value
of a company’s assets that are cash or can be converted into cash immediately. These
include bank accounts, marketable securities, commercial paper, Treasury bills and shortterm government bonds with a maturity date of three months or less. Marketable
securities and money market holdings are considered cash equivalents because they are
liquid and not subject to material fluctuations in value.