Which of the Following Statements Regarding Cash Equivalents Is Correct

question 49

Multiple Choice

Which of the following statements regarding cash equivalents is correct?

• A) A one-year Treasury note could not qualify as a cash equivalent.
• B) All investments meeting the FASB's criteria for cash equivalents must be reported as such.
• C) The date a security is purchased determines its "original maturity" for cash equivalent classification purposes.
• D) Once established,management's policy for classifying items as cash equivalents cannot be changed.

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Definitions:

SOM

Abbreviation typically for "Share Of Market," referring to the percentage of a market controlled by a particular company, product, or brand.

Sanity Checks

Quick, basic tests or analyses run to ensure that assumptions or results are rational and feasible.

Market Size

The total volume or value of sales within a defined market over a specific period of time.

Social Media Tools

Online platforms and technologies that facilitate the creation, sharing, or exchange of information, ideas, and other forms of expression among people.