What is the meaning of cash equivalents?

Defined by FASB as short-term, highly liquid investments that are both: (a) readily convertible to known amounts of cash, and (b) so near their maturity that they represent insignificant risk of changes in value because of changes in interest rates.

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APABarry Goldsmith. (2010). cash equivalents. Retrieved September 24, 2026, from http://smartdefine.org/cash_equivalents/definitions/1149536
ChicagoBarry Goldsmith. 2010. "cash equivalents" http://smartdefine.org/cash_equivalents/definitions/1149536 (accessed September 24, 2026).
HarvardBarry Goldsmith 2010, cash equivalents, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/cash_equivalents/definitions/1149536>.
MLABarry Goldsmith. "cash equivalents" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/cash_equivalents/definitions/1149536>