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What is the definition of cash equivalent? You buy a 6 month CD on Sept 1. You are now on Dec 31 when you have
What is the definition of cash equivalent? You buy a 6 month CD on Sept 1. You are now on Dec 31 when you have to prepare your balance sheet. That 6 month CD will mature on Feb 28 next year. Should you show that CD as a cash equivalent or as a short-term investment on the balance sheet?
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