Only investments with original maturities of less than three months at the date of purchase qualify as cash equivalents.

Name: Only investments with original maturities of less than three months at the date of purchase qualify as cash equivalents.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. Cash equivalents are highly liquid investments that are easily convertible into cash and have original maturities of less than three months. Examples include treasury bills, commercial paper, and money market funds.

Only Investments with Original Maturities of Less Than Three Months