Which of the following statements is true?
a. Investments in commercial paper or U.S. Treasury bills must be treated as cash equivalents.
b. Investments in stock cannot be treated as cash equivalents because they are not convertible into a known amount of cash.
c. Investments which are convertible into a known amount of cash and mature within three months after the balance sheet date are treated as cash equivalents.
d. Investments in money market accounts cannot be treated as cash equivalents because they do not have a specific maturity date.
b
You might also like to view...
Full-employment output is the amount of output produced when the economy is
A. in recession. B. above the natural rate of unemployment. C. utilizing all of its labor and capital. D. in equilibrium.
Elizabeth signs a contract to purchase a new car from Quickcash Motors. She has not yet paid for the car, and Quickcash Motors has not yet delivered the car to Elizabeth. This is an example of a(n) ________ contract.
A. unenforceable B. executory C. void D. executed
The Cave Springs Milling Co. has the following information for last year:Material input13,112,000Labor hours126,000Yards of output produced1,575,000The partial productivity for materials is:
A. 15.75 B. 0.12 C. 8.33 D. 1.31
Saving surplus units include individuals and governments, but not corporations
Indicate whether the statement is true or false