Cash equivalents meet all of the following criteria except:
Are readily convertible to a known cash amount.
Include short-term investments purchased within 3 months of their maturity dates.
Have a market value that is not sensitive to interest rate changes.
Include short-term U.S. treasury bills.
Are more liquid than cash.
Answer
correct option is "E" -Are more liquid than cash.
cash is most liquid asset among current asset .
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