Which of the Following Items Is Considered to Be a Cash

question 168

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 weeks
• C) A one-month Treasury bill due in two weeks
• D) A promissory note due from a customer in 7 months

---

Definitions:

Budgeting

The process of creating a plan to spend your money, outlining an estimate of income and expenditures for a set period of time.

Planning Budget

A financial plan that estimates the income and expenditures for a future period, typically structured around a specific project or business operation.

Supplies Costs

Expenses for materials and items necessary for the maintenance and operation of a business.

Flexible Budget

A budget that adjusts or varies with changes in volume or activity levels, used for planning and control.