I'm using Yaeger and CIndy mentioned in one of the lectures that CD's are cash equivalents. However, I just did an MCQ in the Wiley Test Bank and got it wrong because I included the amount of the CD in the cash equivalent balance. The solution says "to qualify as a cash equivalent, ASC Topic 305 requires that funds be available upon demand without restriction or penalty. Therefore, certificates of deposits or any other instruments having a penalty for early withdrawal are not considered cash equivalents."
So, who's right?
AUD - 94 (Yaeger + NINJA notes) 2/2012
BEC - 5/29
REG - August





