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Identify If the Following Investments Meet the Requirements to Be

Question 14

Essay

Identify if the following investments meet the requirements to be classified as cash and cash equivalents.
 Cash and  cash  equivalents  (Yes/No)  Readily  convertible  to cash?  (Yes No)  Risk of change  in cash value?  (High/Med Low)  Chequing account in US dollars.  Investment in long-term government bonds.  Cash in a sinking fund account for a future  re-purchase of common shares.  Investment in a mutual fund that invests in  common shares of public corporations.  Term deposit maturing 100 days after the  year-end. \begin{array} { | l | l | l | l | } \hline & \begin{array} { c } \text { Cash and } \\\text { cash } \\\text { equivalents } \\\text { (Yes/No) }\end{array} & \begin{array} { c } \text { Readily } \\\text { convertible } \\\text { to cash? } \\\text { (Yes No) }\end{array} & \begin{array} { c } \text { Risk of change } \\\text { in cash value? } \\\text { (High/Med Low) }\end{array} \\\hline \text { Chequing account in US dollars. } & & \\\hline \text { Investment in long-term government bonds. } & & \\\hline \begin{array} { l } \text { Cash in a sinking fund account for a future } \\\text { re-purchase of common shares. }\end{array} & & \\\hline \begin{array} { l } \text { Investment in a mutual fund that invests in } \\\text { common shares of public corporations. }\end{array} & & \\\hline \begin{array} { l } \text { Term deposit maturing } 100 \text { days after the } \\\text { year-end. }\end{array} & & & \\\hline\end{array}

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