Only Investments with Original Maturities of Less Than Three Months

question 83

True/False

Only investments with original maturities of less than three months at the date of purchase qualify as cash equivalents.

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Definitions:

Legal Capacity

The ability of an individual to enter into legal agreements or contracts, often age or condition-related.

Insane Person

A legally declared inability of an individual to manage their affairs due to mental illness or incapacity.

Mental Illness

A broad category of conditions affecting mood, thinking, and behavior, often requiring medical diagnosis and treatment.

Unconscionable Transaction

An agreement that is unfairly one-sided, exploitative, or against ethical or legal standards.