Which of the Following Should Not Be Considered as Part

question 40

Multiple Choice

Which of the following should not be considered as part of "cash and cash equivalents"?

• A)Cash on hand
• B)Cash on deposit
• C)Highly liquid investments
• D)Investments in short-term securities (<90 day maturity)
• E)Cash restricted for retirement of bonds

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Definitions:

Pre-tax Effect

The impact of an event or transaction on a company's financials before taking into account the effects of income tax.

Units

A measurement or quantity of something, often used in the context of production, sales, or inventory.

LIFO Liquidation

A situation where older inventory, costed at historical prices, is sold, possibly resulting in higher reported profits due to inflation.

Pre-tax Effect

The impact on financial results before the adjustment for taxes has been made.