Generally,if a short-term investment is to be classified as a cash equivalent,it must fall due within
A) 12 months from the date it was acquired.
B) 6 months from the date it was acquired.
C) 3 months from the date it was acquired.
D) 1 month from the date it was acquired.

Question

Quizplus · Accepted Answer

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. They typically have a maturity of three months or less from the date of acquisition.

Generally,if a Short-Term Investment Is to Be Classified as a Cash