How does FASB detine cash equivalents? A. Cash equivalents are short-tem, Highly lquid investments that do not have either of the following characteristics: (a) reasily convertele bo known anounts of cash and (b) so near their maturity that they present insignilicant risk of changes in value because of changes in inderest rates B. Cash equialents are on the asset side of a companys balance sheet that represents the compary's investments, induding stocks, bonds, reaf estave and cash, that it intends to hold for more than a year. tey presemt insignificant risk of changes in valve because of changes in interest rates. D. Cash oquivalents are long-lerm, highly liquid imestments that have one of the folowing characteristics (a) restiy converble to known amourts of cath and (b) so near their matunty that they present insignificant risk of changes in value because of chenges in interese rates. The Codeconion reterence is