Cash Equivalent

  

You know, like cigarettes in prison. On the outside, it's a term used for a particular item on a balance sheet. Cash equivalents are cash and anything that can be sold and converted into cash quickly (within 30 days or so). These things can include things like money market funds or T-Bills. Stuff like intellectual property and patents, although valuable, don't count because they aren't easily sold and made into cash.

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