Cash equivalents refer to investments that are held by companies for a short period of time, of high liquidity, and are easy to convert to a known amount of cash, with little risk of value changes. Although cash equivalents are not cash, their ability to pay is not much different from cash, which can be seen as cash.
According to the above definition, which of the followings is a type of cash equivalents?
Company A buys short-term bonds and can realize cash at any time when it is needed