To Be Classified as a Cash Equivalent,an Item Must Be

question 39

True/False

To be classified as a cash equivalent,an item must be readily convertible to a known amount of cash and have an original maturity to the investor of three months or more.

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Definitions:

Protections

Measures or provisions put in place to guard against harm, damage, or legal infringement, particularly in legal, economic, and technological contexts.

Negotiable Instrument

A textual document that pledges the payment of an exact monetary amount, to be made either when asked or at a predetermined time, and it specifies who will make the payment.

Sum Certain

A legal term referring to a specified or fixed amount of money.

Unconditional Promise

A pledge or guarantee that is absolute and not subject to any conditions or contingencies.