Is money market funds cash equivalent?

Is money market funds cash equivalent?
Yes. Since the Fund meets the definition of a money market fund under the Act, the Fund may be classified as a cash equivalent in Company X's statement of cash flows. FASB Statement No. 95, Statement of Cash Flows ("FAS 95"), par. 9, indicates that items commonly considered cash equivalents include treasury bills, commercial paper, and money market funds. Although FAS 95 does not include the definition of what constitutes a money market fund, we believe it is appropriate for a money market fund that meets all of the qualifying criteria for a money market fund under the Act to be classified as a cash equivalent in the statement of cash flows.
However, If the Fund does not meet all of the qualifying criteria for a money market fund under the Act, Company X should compare the attributes of the investments made by the Fund, such as credit quality and maturity, and the weighted average maturity of the Fund's investments to the requirements for an SEC registered money market fund in order to determine if classification of its investment as a cash equivalent is appropriate. FAS 95, par. 8, states that:
"...cash equivalents are short-term, highly liquid investments that are both
a. Readily convertible to known amounts of cash
b. So near their maturity that they present insignificant risk of changes in value because of changes in interest rates.
Generally, only investments with original maturities of three months or less qualify under that definition."
I think that if (1) the Fund's policies include a provision that requires the weighted average maturity of the Fund's securities holdings not to exceed 90 days, (2) Company X has the ability to redeem the Fund's shares daily in accordance with its cash-management policy, and (3) the Fund's investment attributes are consistent with the investment attributes of an SEC registered money market fund and the definition of cash equivalents in FAS 95, it would be appropriate for Company X's investment in the fund to be classified as a cash equivalent in its statement of cash flows.