Which of the Following Is Considered a Cash Equivalent

question 62

Multiple Choice

Which of the following is considered a cash equivalent?

• A) Commercial paper.
• B) Compensating balances.
• C) Money market fund.
• D) Both a and c

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Definitions:

Net Operating Losses

A financial situation where a company's allowable tax deductions exceed its taxable income within a tax period, leading to a negative taxable income.

Net Advantage To Leasing

The total financial benefit that a company gains from leasing an asset rather than purchasing it, taking into account all costs and savings associated with the lease.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life, assuming a constant rate of depreciation.