- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 20. Understanding Cash Flow Statements
- Subject 2. Preparing the Cash Flow Statement
CFA Practice Question
For purposes of preparing a cash flow statement, which of the following is not considered a "cash equivalent"?
B. An investment in IBM bonds
C. Treasury bills
D. Commercial paper
A. A money market fund
B. An investment in IBM bonds
C. Treasury bills
D. Commercial paper
Correct Answer: B
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. |