Question

Identify cash equivalents from the listed items. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Money market funds unchecked Supplies unanswered Three-month Treasury bills unanswered Accounts receivable unanswered Prepaid rent unanswered

Answer 1

Answer:

Cash equivalents form the listed items below includes

1. Money market funds
2. Three-month Treasury bills
3. Prepaid rent

Explanation:

Cash equivalents refers to the line item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately.

They include money market funds, three month treasury bills and prepaid rent,

1. Money market funds provide a viable treasury management solution, combining the provision of capital security with liquidity.

2. The Three Month Treasury Bill is a government issued treasury security that has a maturity of 3 months.

3. Prepaid rent is rent paid prior to the rental period to which it relates, so the tenant should record on its balance sheet the amount of rent paid that has not yet been used.

Answer 2

Answer:

These two are cash equivalents:

Money market funds

Three-month Treasury bills

Because they represent short-term investments that a company makes with the goal of getting rid of any excess cash that would otherwise be left unused while it is losing value because of inflation.

In other words, the main goal of investments in money market funds and three-month treasury bills, is to prevent cash from losing value due to inflation, and because of that, those investments are considered cash equivalents.