Cash equivalents refer to:

A) Short-term investments that have a maturity date no longer than three months from the date of purchase.

B) Amounts receivable from customers that have a very high probability of collection.

C) Short-term investments that have increased in value since the date of purchase, and therefore have generated additional cash for the company.

D) The total amount of cash a company would have if all assets were sold.

Answer: Short-term investments that have a maturity date no longer than three months from the date of purchase.