Which of the Following Statements Is True

question 93

Multiple Choice

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.

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Definitions:

Cash Transfer Program

Government programs that provide money directly to individuals or families to reduce poverty and support economic stability.

State Governments

The governing bodies of individual states within a federal system, responsible for executing state laws and managing state government functions.

SNAP Program

The Supplemental Nutrition Assistance Program, a federal aid program providing food-purchasing assistance for low- and no-income people living in the U.S.

Administrative Costs

Administrative Costs are expenses related to the general operations of a business or organization, including salaries of non-production employees, rent, utilities, and office supplies.