A Company Holds $100,000 in a Term Deposit Account as an Interest-Generating

question 2

Multiple Choice

A company holds $100,000 in a term deposit account as an interest-generating investment.For purposes of the statement of cash flows the term deposit will be classified as:

• A) cash equivalent
• B) investment
• C) either cash equivalent or investment
• D) none of the above

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Definitions:

Lottery Ticket

A form of gambling that involves the drawing of numbers for a prize.

Odds of Winning

A numerical expression that represents the likelihood of winning a game, bet, or any situation where there is a competition with a possible outcome.

Representativeness Heuristic

A cognitive bias in decision making where the likelihood of an event is judged based on how similar it is to the population it came from, often leading to errors in judgment.

New Neighbour

A person who has recently moved into a residence or area close to one's own living space.