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Mastering Cash Equivalents

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Questions and Answers

Which of the following is considered a cash equivalent?

Savings accounts

Chequing accounts

Short-term investments

All of the above (correct)

What is the primary purpose of cash equivalents?

To generate long-term returns

To reduce tax liabilities

To finance company operations

To provide liquidity (correct)

Which of the following is not considered a cash equivalent?

Long-term investments (correct)

Savings accounts

Chequing accounts

Money market funds

Mastering Cash Equivalents

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Questions and Answers

Which of the following is considered a cash equivalent?

What is the primary purpose of cash equivalents?

Which of the following is not considered a cash equivalent?

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