Question

______ means short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Options

• Cash and Cash Equivalents

• Cash Flows

• Cash

• None of these

Answer 1

Cash and Cash Equivalents means short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Explanation:

Cash equivalents are investments held for the exclusive purpose of meeting short-term cash obligations, rather than for investment or other purposes.