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:

Manager Experience

The accumulated knowledge, skills, and competencies that an individual acquires through holding managerial roles over time.

Least Cost Combination

An economic principle where firms seek to minimize production costs by using the most efficient combination of resources.

Inputs

The resources used in the production process, such as labor, raw materials, and capital equipment.

Output Per Day

The total quantity of goods or services produced by an entity in a single day.