cash equivalent

Frequency: 7.08.8 per million words

In business, an investment that is highly liquid and can be quickly converted into cash.

equivalentADJECTIVE + NOUN

Categories:

cash

Examples (10)

  • The company has $43.8 million in cash and cash equivalents.
  • A Treasury bill is considered a cash equivalent because of its high liquidity.
  • On the balance sheet, cash equivalents are listed under the current assets section.
  • Investors often hold cash equivalents as a safe haven during market downturns.
  • The fund's portfolio includes a significant allocation to cash equivalents for stability.
  • To be classified as a cash equivalent, an investment must be readily convertible to a known amount of cash.
  • The company's liquidity was assessed by looking at its total cash and cash equivalents.
  • He decided to move his profits into cash equivalents while waiting for the next opportunity.
  • Money market funds are a popular type of cash equivalent for many corporations.
  • The quarterly report showed a decrease in the company's holdings of cash equivalents.