Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Find out more

Basic Question 18 of 20

For purposes of preparing a cash flow statement, which of the following is not considered a "cash equivalent"?

A. A money market fund
B. An investment in IBM bonds
C. Treasury bills
D. Commercial paper
Check Answer Previous Q Next Q Print

User Contributed Comments 9

User Comment
jsheth Because Bonds have a fixed maturity? No. It's due to liquidity.
magicchip + fluctuating value.
jessiew123 Can someone tell me what "commercial paper" is?
skath Commericial Paper is when company borrows short term loans to cover its operating expenses eg. payroll.
bahamas commercial paper credit freeze was what caused lehman and countless other large banks to go under.
YOUCANDOIT good point jsheth!
leon121 Isn't commercial paper a liability?
joy2015 it can be an asset if you have it.
choas69 i still dont get it.
You need to log in first to add your comment.
Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

describe the steps in the preparation of direct and indirect cash flow statements, including how cash flows can be computed using income statement and balance sheet data

CFA® 2025 Level I Curriculum, Volume 2, Module 4.