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.

Apply concepts of costs (sunk costs, marginal costs) to real-world scenarios affecting economic decisions.

Grasp the importance and benefits of trade and specialization for individuals and economies.

Understand the function of markets and the role of households and firms within them.

Comprehend the impact of government actions on economic outcomes and the concept of market failure.

---

Definitions:

Management Functions

Outlines the primary tasks and responsibilities of managers, typically including planning, organizing, leading, and controlling.

Coordination

The organization of different elements or activities to enable them to work together efficiently and effectively.

Scalar Chain Principle

A management theory emphasizing a clear and direct line of authority within an organization, from the highest to the lowest ranks.

Behavioural Approach

A perspective in management and psychology focusing on the behaviors of individuals rather than internal processes as key to understanding human actions.