Which of the Following Statements Regarding Cash Equivalents Is INCORRECT

question 163

Multiple Choice

Which of the following statements regarding cash equivalents is INCORRECT?

• A)Cash equivalents are sufficiently similar to cash and thus can be reported along with cash on the balance sheet.
• B)Cash equivalents include high-grade U.S.or foreign government securities that are very close to maturity (three months or less at the time of purchase).
• C)Most companies include additional information about cash and cash equivalents in the footnotes to their financial statements.
• D)Because cash equivalents are less liquid than cash,they must be reported separately from the Cash account.

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Definitions:

Crystallization

In the social sciences, it refers to the process by which vague opinions or beliefs become solidified into clear and distinct ideas or ideologies.

Industrial Societies

Use machines and fuel to greatly increase the supply and dependability of food and finished goods. The first such societies emerged about 225 years ago in Great Britain. Productivity, the division of labor, and average settlement size increased substantially in industrial societies compared with agricultural societies. While social inequality was substantial during early industrialism, it declined as the industrial system matured.

Social Inequality

The presence of unequal chances and benefits for various social roles or statuses within a community or society.

Hunting And Gathering

An ancient subsistence strategy involving the hunting of animals and foraging of plant life, oftentimes practiced by nomadic societies.