Define: Cash Equivalents

UK Accounting Glossary

Definition: Cash Equivalents


Quick Summary of 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.




What is the dictionary definition of Cash Equivalents?

Dictionary Definition


Cash equivalents (also known as “cash and equivalents”) are investments securities that are for short-term investing, and they have high credit quality and are highly liquid.


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Full Definition of Cash Equivalents


They are one of the three main asset classes, alongside stocks and bonds.


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Cash Equivalents. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/cash-equivalents/ (accessed: November 22, 2019).
American Psychological Association (APA):
Cash Equivalents. PayrollHeaven.com. Retrieved November 22, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/cash-equivalents/

Definition Sources


Definitions for Cash Equivalents are sourced/syndicated from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.