Cash Equivalents Include Investments That Can Be Readily Converted into Cash;investment

question 36

True/False

Cash equivalents include investments that can be readily converted into cash;investment maturity dates are irrelevant.

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Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash within a year.

Dutch Auction

A method of auction in which the price of the item is reduced until it meets a bid.

Shares

Portions of ownership in a corporation or financial asset.