Please teach me!!! accounting!!?

The question I have is about Cash Equivalents. In the book, it says that U.S. Treasury bills and money market funds are examples. Are there further examples of the Cash Equivalent?

Cash equivalents are usually anything that can be turned into cash within 90 days of purchase. Checks would not fall into cash equivalency, as they are considered cash, as are money orders.

Some CD's are considered cash equivalents. But remember, only if they are due within 90 days of purchase. For instance, if you bought a 120 day CD 3 months ago, that would mean next month, you can get the cash. But that is not a cash equivalent, because it wasn't able to be cash with 90 days of purchase. Even if it were due tomorrow, you would have to classify it as a short-term investment, until the maturity date.

If you had a 90 day CD bought today and the aforementioned 120 day CD maturing tomorrow, only the 90 day CD is a cash equivalent. The text book says savings accounts, CD's, money market accounts, T-Bills and money market mutual funds are cash equivalents. Commercial paper is also included, as long as the maturity date is within 90 days of purchase.

Again, I stress the within 90 days of purchase. It doesn't change from short-term investment to cash equivalent as it gets closer to maturity.

anything that is very quickly changable to cash: money market fund, checking account, money orders, etc.

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