Cash and cash equivalents are assets that are either cash or can be converted into cash immediately.

1. Cash on hand, i.e. notes and coins: This is an example of cash and therefore is a cash equivalent.

2. Bank overdraft: This is not a cash equivalent. A bank overdraft is a deficit in a bank account caused by drawing more money than the account holds. It's a liability, not an asset.

3. Money market deposit with 5 months to maturity: This is not a cash equivalent. Cash equivalents are investments that can be readily converted into cash within three months. An investment with a maturity of 5 months does not meet this criterion.

4. Investments with less than 3 months to maturity: These are considered cash equivalents because they can be readily converted into cash.

So, the option "Bank overdraft" and "Money market deposit with 5 months to maturity" are not examples of cash and cash equivalents.

Question

Cash and cash equivalents are assets that are either cash or can be converted into cash immediately.

1. Cash on hand, i.e. notes and coins: This is an example of cash and therefore is a cash equivalent.

2. Bank overdraft: This is not a cash equivalent. A bank overdraft is a deficit in a bank account caused by drawing more money than the account holds. It's a liability, not an asset.

3. Money market deposit with 5 months to maturity: This is not a cash equivalent. Cash equivalents are investments that can be readily converted into cash within three months. An investment with a maturity of 5 months does not meet this criterion.

4. Investments with less than 3 months to maturity: These are considered cash equivalents because they can be readily converted into cash.

So, the option "Bank overdraft" and "Money market deposit with 5 months to maturity" are not examples of cash and cash equivalents.

Knowee AI · Accepted Answer

Cash and cash equivalents are assets that are either cash or can be converted into cash immediately.

1. Cash on hand, i.e. notes and coins: This is an example of cash and therefore is a cash equivalent.

2. Bank overdraft: This is not a cash equivalent. A bank overdraft is a deficit in a bank account caused by drawing more money than the account holds. It's a liability, not an asset.

3. Money market deposit with 5 months to maturity: This is not a cash equivalent. Cash equivalents are investments that can be readily converted into cash within three months. An investment with a maturity of 5 months does not meet this criterion.

4. Investments with less than 3 months to maturity: These are considered cash equivalents because they can be readily converted into cash.

So, the option "Bank overdraft" and "Money market deposit with 5 months to maturity" are not examples of cash and cash equivalents.

Which of the following is not an example of cash and cash equivalents?Group of answer choicesCash on hand, i.e. notes and coins.Bank overdraft.Money market deposit with 5 months to maturity.Investments with less than 3 months to maturity.

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