Describe the types of assets that are typically included under the heading "cash and cash equivalents" on the balance sheet. What is a "cash equivalent"?

A. "Cash and cash equivalents" includes liquid assets such as term deposits, certificates of deposit, and high-grade Canadian or foreign government securities that are very close to maturity (three months or less at the time of purchase). Besides cash, all of these listed are considered to be "cash equivalents"items quickly and easily converted to cash.

B. "Cash and cash equivalents" includes non-current assets such as long-term investments, property, plant, and equipment, and note receivables that are due beyond one year.

C. "Cash and cash equivalents" includes liquid assets such as long-term investments, property, plant, and equipment, and note receivables that are due beyond one year.

D. "Cash and cash equivalents" includes non-current assets such as term deposits, certificates of deposit, and high-grade Canadian or foreign government securities that are very close to maturity (three months or less at the time of purchase). Besides cash, all of these listed are considered to be "cash equivalents"items quickly and easily converted to cash.