Generally, if a short-term investment is to be classified as a cash equivalent,:
A)1 month from the date it was acquired.
B)3 months from the date it was acquired.
C)6 months from the date it was acquired.
D)12 months 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 which are subject to an insignificant risk of changes in value. Generally, they are investments with original maturities of three months or less from the date of acquisition.

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