Question

A cash equivalent is a short-term, highly liquid investment that is readily convertible into known amounts of cash and Group of answer choices is acceptable as a means to pay current liabilities. has a current market value that is greater than its original cost bears an interest rate that is at least equal to the prime rate of interest at the date of liquidation. is so near its maturity that it presents insignificant risk of changes in interest rates.

Answer 1

Answer:

so near its maturity that it presents insignificant risk of changes in interest rates.

Explanation:

As we know that the cash equivalent i.e .short term and also classified as the highly liquid investment that is always ready to convert into the cash amount i.e. near to its maturity also at the same time it represent the non-significant changes risk with respective to the rate of interest

Therefore the last option is correct