Question

Identify cash equivalents from the listed items.

a. Money market funds
b. Supplies
c. Three-month Treasury bills
d. Accounts receivable
e. Prepaid rent

Answer 1

Money market funds , Three-month treasury bills

Step-by-step explanation:

Cash equivalents are the liquid current assets that are easily convertible into a known cash amount. Examples of cash equivalents are commercial paper, treasury bills, marketable securities, and money market holdings.

Stocks, bonds, and derivatives, are excluded from the category of cash equivalents.

Money market funds , Three-month treasury bills are considered as cash equivalents.