Cash Equivalents
/ˈkæʃ ˌɛkwɪvə-lənts/
Definitions
- (n.) Short-term, highly liquid investments readily convertible to known amounts of cash and subject to insignificant risk of value change.
Companies list treasury bills and money market funds as cash equivalents in their financial statements.
Forms
- cash equivalents
Related terms
See also
Commentary
Cash equivalents must be easily convertible to cash with minimal risk, often maturing within three months to qualify in legal and accounting contexts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.