Hello,
Which one of these is "cash equivalent" and which one isn't:
1- A time deposit with a maturity of 3 months, the company opened it for investment but the bank refused to open it for a longer maturity to avoid the high interest. It will be renewed automatically upon maturity.
2- A time deposit with a matrurity of 4 months, the company opened it for only four months as it is expected to be needed to cover a liability that will become due then. It also has the option of being renewed automatically.
Thanks in advance...
Which one of these is "cash equivalent" and which one isn't:
1- A time deposit with a maturity of 3 months, the company opened it for investment but the bank refused to open it for a longer maturity to avoid the high interest. It will be renewed automatically upon maturity.
2- A time deposit with a matrurity of 4 months, the company opened it for only four months as it is expected to be needed to cover a liability that will become due then. It also has the option of being renewed automatically.
Thanks in advance...