Generally,if a Short-Term Investment Is to Be Classified as a Cash

question 57

Multiple Choice

Generally,if a short-term investment is to be classified as a cash equivalent,it must fall due within

• A) 12 months from the date it was acquired.
• B) 6 months from the date it was acquired.
• C) 3 months from the date it was acquired.
• D) 1 month from the date it was acquired.

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Definitions:

Peerless Case

A reference to Raffles v. Wichelhaus, a landmark court case that dealt with mutual mistake in contract law, specifically regarding the identity of a ship named Peerless.

Rescinded Contract

A contract that has been declared void and is no longer legally binding, often due to mutual agreement or legal reasons.

Mutual Mistake

A situation in contract law where all parties involved have a shared erroneous belief concerning a basic assumption on which the contract was made.

Unilateral Mistake

A situation where only one party to a contract is mistaken about a fundamental fact or term of the contract.