cash equivalent (Meaning)
Wordnet
cash equivalent (n)
a highly liquid debt instrument with maturities of less than three months
Synonyms & Antonyms of cash equivalent
No Synonyms and anytonyms found
cash equivalent Sentence Examples
- Treasury bills are often considered a cash equivalent due to their high liquidity.
- Money market funds are a common investment choice for those seeking cash equivalents with minimal risk.
- Short-term government bonds are also classified as cash equivalents because of their liquidity and low risk.
- Commercial paper is another example of a cash equivalent commonly used by corporations to manage short-term cash needs.
- Cash equivalents are investments that can be easily converted into cash within a short period.
- Certificates of deposit (CDs) with maturities of less than three months can be considered cash equivalents.
- Companies often include highly liquid investments such as money market instruments in their cash equivalent holdings.
- Treasury notes with maturities of less than three months are classified as cash equivalents.
- Marketable securities with short-term maturities are typically treated as cash equivalents on a company's balance sheet.
- Cash equivalents play a crucial role in maintaining liquidity and managing short-term cash flow needs.
FAQs About the word cash equivalent
a highly liquid debt instrument with maturities of less than three months
No synonyms found.
No antonyms found.
Treasury bills are often considered a cash equivalent due to their high liquidity.
Money market funds are a common investment choice for those seeking cash equivalents with minimal risk.
Short-term government bonds are also classified as cash equivalents because of their liquidity and low risk.
Commercial paper is another example of a cash equivalent commonly used by corporations to manage short-term cash needs.
