Which of the Following Is Not Considered to Be a Cash

question 64

Multiple Choice

Which of the following is not considered to be a cash equivalent?

• A) Corporate commercial paper due in 60 days after purchase
• B) U.S. Treasury bills with an original maturity of six months
• C) A money market account with a stock brokerage firm
• D) A certificate of deposit with a term of 75 days when acquired

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Definitions:

Asset-backed Commercial Papers

Short-term investments secured by bundled assets, like loans or receivables, allowing companies to finance these assets.

Investors

Individuals or entities that allocate capital with the expectation of achieving a future financial return.

Securities

Assets which embody either ownership in a stock of a company available to the public, a lending relationship with a government or corporate entity through bonds, or claims to ownership via options.

Warrant Holder

An individual or entity that owns a warrant, giving them the right, but not the obligation, to buy a company's stock at a specified price before the warrant expires.