Which of the Following Items Is Considered to Be a Cash

question 108

Multiple Choice

Which of the following items is considered to be a cash equivalent?

• A)An investment in a U.S.bond due in two years.
• B)A one-year certificate of deposit due in six months.
• C)A one-month Treasury bill due in two weeks.
• D)A promissory note due from a customer in 7 months.

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Definitions:

Agricultural Societies

Communities whose economies are based primarily on the production and maintenance of crops and farmland, often signifying a shift from hunter-gatherer lifestyles.

Multipurpose Money

A concept in economics where money is used for various purposes beyond medium of exchange, including as a unit of account, a store of value, and a standard of deferred payment.

Merchant Capitalism

An economic phase in which merchants' wealth is accumulated through trade and the exploitation of international commerce, often preceding industrial capitalism.

Commercial Use

The exploitation of products, services, or activities with the primary goal of generating profit and economic growth.