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:

Department Heads

Leaders responsible for overseeing specific departments within an organization, ensuring their team meets the objectives and goals set by upper management.

Promote Efficiency

Actions or strategies undertaken to improve the productivity and effectiveness of an operation or process, minimizing waste and maximizing output.

Budget Committee

A group responsible for overseeing the preparation, implementation, and review of budgets within an organization.

Internal Auditors

Professionals within an organization responsible for evaluating and improving the effectiveness of risk management, control, and governance processes.