Cash Equivalents
Short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
[Terminology IFRS IAS 7.6]
Cash includes legal tender, bills, coins, checks received but not deposited, and checking and savings accounts. Cash equivalents are any short-term investment securities with maturity periods of 90 days or less. They include bank certificates of deposit, banker’s acceptances, Treasury bills, commercial paper, and other money market instruments.
Cash and its equivalents differ from other current assets like marketable securities and accounts receivable, based on their nature. However, certain marketable securities may classify as a cash equivalent, depending on the accounting policy of a company.
List of Cash Equivalents
The full list of cash equivalents includes the following items with maturity dates that are typically three months or less:
• Banker’s acceptance
• Commercial paper
• Treasury bills
• Other liquid investments that mature within three months.
https://corporatefinanceinstitute.com/resources/knowledge/accounting/cash-equivalents/
https://www.tandfonline.com/doi/abs/10.1080/01621459.1968.11009239