What Are Cash Equivalents?

Types, Features, Examples. What are cash equivalents?

Types:

Features:

Examples: Are debtors cash equivalents? Debtors are not cash equivalents. Cash equivalents are short-term, highly liquid investments that are easily converted to cash. Debtors are not as liquid as cash equivalents and may take longer to convert to cash.

How many types of cash are there?

There are two types of cash: physical cash and electronic cash.

Physical cash is the cash that you have in your wallet or in your bank account. This is the cash that you can use to buy things.

Electronic cash is the cash that you have in your PayPal account or in your Bitcoin account. This is the cash that you can use to buy things online. What is a source of cash give three examples? The three most common sources of cash are:

1) Money market instruments: These include short-term debt instruments with maturities of one year or less, such as commercial paper, Treasury bills, and certificates of deposit.

2) Equity instruments: Common stock, preferred stock, and convertible securities are all examples of equity instruments that can be used to raise cash.

3) Debt instruments: Debt instruments are often used to raise cash, and include bonds, debentures, and loans.

Is cash and cash equivalents a financial instrument? Yes, cash and cash equivalents are financial instruments. Financial instruments are any contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity. Cash and cash equivalents are a type of financial instrument that is used in many transactions. Which is not considered a cash equivalent? There are many different types of cash equivalents, but the most common are Treasury bills, commercial paper, and money market funds. Other types of cash equivalents include short-term government bonds, municipal bonds, and corporate bonds.