Question

    Which of the following is not a cash

    equivalent?
    A Treasury bills maturing within 3 months Correct Answer Incorrect Answer
    B Commercial paper maturing in 2 months Correct Answer Incorrect Answer
    C Highly liquid money market funds convertible within one week Correct Answer Incorrect Answer
    D Equity shares held for strategic reasons Correct Answer Incorrect Answer

    Solution

    Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash. Equity shares held for strategic long-term purposes are not considered cash equivalents.

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