What is the meaning of Cash equivalent?

Low-risk investments, such as money market funds or short-term certificates of deposit (CDs), are considered' Cash equivalent's. The Financial Accounting Standards Board (FASB), which is responsible for establishing national accounting standards, defines cash equivalents as highly liquid securities with maturities of less than three months. Liquid securities typically are those that can be sold easily with little or no loss of value.

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APABarry Goldsmith. (2010). cash equivalent. Retrieved September 26, 2026, from http://smartdefine.org/cash_equivalent/definitions/1149534
ChicagoBarry Goldsmith. 2010. "cash equivalent" http://smartdefine.org/cash_equivalent/definitions/1149534 (accessed September 26, 2026).
HarvardBarry Goldsmith 2010, cash equivalent, Smart Define, viewed 26 September, 2026, <http://smartdefine.org/cash_equivalent/definitions/1149534>.
MLABarry Goldsmith. "cash equivalent" 21 October 2010. Web. 26 September 2026. <http://smartdefine.org/cash_equivalent/definitions/1149534>
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