Which of the Following Statements Is True

question 121

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 that 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:

Sugar Trade

The global industry centered around the cultivation, processing, and sale of sugar, historically linked to the transatlantic slave trade and colonial exploitation.

Española

Refers to La Española, an island in the Caribbean known today as Haiti and the Dominican Republic.

Immunity

The biological state or condition in which an organism has sufficient biological defenses to avoid infection, disease, or other unwanted biological invasion.

Indian Crops

Plants domesticated and cultivated by Native American peoples, including maize (corn), beans, and squash, which were essential to indigenous agricultural systems.