Cash equivalents: A

The correct option is (A).

Short term highly liquid investment assets which can be easily converted into cash within a short period of time are known as cash equivalents.

Hence, it is a correct option.

Reasons for incorrect options:_

• Option (B): It includes 3 months or less certificate of deposit.
• Option (C): It includes bank accounts and marketable securities.
• Option (D): All the amount of petty cash would be included in the sum total of cash and cash equivalents which is then recorded as an asset in the balance sheet of a company.
• Option (E): Not all money orders is included in the cash equivalents but the orders with 3 months or less maturity period is included in the cash equivalents of a company.