Equity investments mostly are excluded from cash equivalents, unless they are essentially cash equivalents, for instance, if the preferred shares acquired within a short maturity period and with specified recovery date. Accounting for Non-Accounting Students. Money market funds provide an efficient and effective tool for companies and organizations to manage their money since they tend to be more stable compared to other types of funds like mutual funds. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents.