Cash equivalents refer to:

A. Amounts receivable from customers that have a very high probability of collection.
B. Short-term investments that have a maturity date no longer than three months from the date of purchase.
C. Short-term investments that have increased in value since the date of purchase, and therefore have generated additional cash for the company.
D. The total amount of cash a company would have if all assets were sold.


Answer: B

Business

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