Which One of the Following Would never Be Considered a Cash

question 45

Multiple Choice

Which one of the following would never be considered a cash equivalent?

• A)U.S.Treasury bills
• B)Corporate commercial paper
• C)Money market funds
• D)Common stock issued by a corporation

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Definitions:

Debt

A sum of money lent by one party to another, with the agreement it will be repaid later, typically with additional interest.

Financial Leverage

Taking advantage of borrowed finances to raise the possible outcomes of an investment.

Business Risk

The exposure a company or investor has to factor(s) that will lower its profits or lead to a loss.

Financial Risk

Financial risk is the possibility of losing money on investments or business operations due to market fluctuations, credit issues, or other financial uncertainties.