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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