An Item or Transaction Will Qualify for Classification as a Cash

question 19

Multiple Choice

An item or transaction will qualify for classification as a cash equivalent:

• A) if it has a remaining term of more than three months but no more than six months
• B) its term to maturity is no greater than twelve months
• C) it has a fixed maturity date of greater than twelve months
• D) only if it had a maturity of less than three months at the date of acquisition.

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Definitions:

Human Resource Department

The department within an organization responsible for managing employee-related functions, from hiring to benefits.

High Powered Incentives

Incentive mechanisms designed to significantly motivate and reward individuals for achieving certain performance targets.

Compensation Schedule

A structured plan that outlines the salaries, wages, benefits, and bonuses that employees receive from an employer.

Budget-gaming Problem

A situation where individuals or departments manipulate or exaggerate their budget needs in order to secure larger allocations for themselves, often at the expense of the organization's overall efficiency.