Cash Equivalents Are Assets That Can Be Converted to Cash

question 65

True/False

Cash equivalents are assets that can be converted to cash within one year.

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Definitions:

Annuity

An annuity refers to a financial mechanism that delivers a steady flow of payments to someone, usually utilized as a revenue stream for individuals in retirement.

Semi-annual Contributions

Payments or deposits made twice a year into a financial account or investment plan.

Tax-Free Savings Account

A type of savings account that offers tax benefits, allowing individuals to earn interest or other returns without taxation.

Ordinary General Annuity

An annuity where payments are dispensed at the conclusion of each period, including monthly or yearly intervals.