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.


Full Definition of Cash Equivalents

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


Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Cash Equivalents. Payroll & Accounting Heaven Ltd. November 22, 2019
Chicago Manual of Style (CMS):
Cash Equivalents. Payroll & Accounting Heaven Ltd. (accessed: November 22, 2019).
American Psychological Association (APA):
Cash Equivalents. Retrieved November 22, 2019, from website:

Definition Sources

Definitions for Cash Equivalents are sourced/syndicated from:

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

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