How does FASB define cash equivalents? Provide the Codification reference. How does FASB define cash equivalents? O A. Cash equialents are on the asset side of a company's balance sheet that represents the company's investments, including stocks, bonds, real estate and cash, that it intends to hold for more than a year. O B. Cash equivalents are short-term, highly liquid investments that do not have either of the following characteristics: (a) readily convertible to known amounts of cash and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. OC. Cash equivalents are short-term, highly liquid investments that have both of the following characteristics: (a) readily convertible to known amounts of cash and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. O D. Cash equivalents are long-term, highly liquid investments that have one of the following characteristics: (a) readily convertible to known amounts of cash and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The Codification reference is