This is my current understandings.
Cash = that thing with dead presidents, winning power ball ticket :-)
Cash equivalents = Bonds with ORIGINAL maturity of a quarter.
Short term investments = Bonds with ORIGINAL maturity of 1 year.
Q1: When during the duration test: Is it <3 months, or <=3 months? Similarly, < 1 year or <=1 year?
Q2: If a bond originally was for 5 years, but if only 2 months are left in its maturity, why is that not cash equivalent (as long as valued at the current market value)?
Q3. What about savings and money market accounts? Cash?
Q4. What about a CD that matures in 2 years? Is that not liquid enough to be considered short term investment?
Cash = that thing with dead presidents, winning power ball ticket :-)
Cash equivalents = Bonds with ORIGINAL maturity of a quarter.
Short term investments = Bonds with ORIGINAL maturity of 1 year.
Q1: When during the duration test: Is it <3 months, or <=3 months? Similarly, < 1 year or <=1 year?
Q2: If a bond originally was for 5 years, but if only 2 months are left in its maturity, why is that not cash equivalent (as long as valued at the current market value)?
Q3. What about savings and money market accounts? Cash?
Q4. What about a CD that matures in 2 years? Is that not liquid enough to be considered short term investment?
Cash, Cash Equivalents and Short Term investments