cash equivalent

cash equivalent definition - business

cash equivalent

  1. An asset, such as property or stock, that has a realizable cash value equivalent to a specific sum of money.
  2. An asset that is so easily and quickly convertible to cash that holding it is essentially equivalent to holding cash. A Treasury bill is considered a cash equivalent.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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