Question

which of the following items is not considered as cash equivalents​

Answer 1

Answer:

Investments in liquid securities, such as stocks, bonds, and derivatives, are not included in cash and equivalents. Even though such assets may be easily turned into cash (typically with a three-day settlement period), they are still excluded.

Answer 2

Answer:

Investments are not considered as cash equivalents​.

Explanation:

What are cash equivalents:

• Any short-term investment security with a maturity time of 90 days or less is considered a cash equivalent.
• Bank certificates of deposit, banker's acceptances, Treasury bills, commercial paper, and other money market instruments are examples of these products.

What are investments:

• An item acquired or invested in to grow wealth and save money through hard earned income or appreciation is defined as an investment.
• The primary goal of investing is to earn an additional source of income or to benefit from the investment over a set period of time.