CFA Practice Question

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CFA Practice Question

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
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.
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