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.

---

Definitions:

Prospective Customers

Individuals or organizations potentially interested in purchasing a company's products or services but have not yet done so.

Sales Engineer

A professional who combines technical knowledge with sales skills to provide advice and support on a range of products or services.

Technical Expertise

The specialized knowledge, skills, and experience required to perform specific tasks, especially in technical fields.

Selling Situation

The circumstances or environment in which a transaction between a buyer and a seller takes place, including factors like market conditions and customer needs.