Highly Liquid Short-Term Investments That Are Easily Convertible into Cash

question 46

Multiple Choice

Highly liquid short-term investments that are easily convertible into cash are called:

• A)trading securities.
• B)cash equivalents.
• C)current assets.
• D)accounts receivable.

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Definitions:

Continuing Operations

Parts of a business expected to continue for the foreseeable future, exclusive of any segments that may be sold off or discontinued.

Audit

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern.

Opinion

A belief or judgment formed about something, not necessarily based on fact or knowledge.

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public; it involves practicing good citizenship through sustainable business operations and philanthropy.