Which of the following statements is true?
A)Investments in commercial paper or U.S.Treasury bills must be treated as cash equivalents.
B)Investments in stock cannot be treated as cash equivalents because they are not convertible into a known amount of cash.
C)Investments that are convertible into a known amount of cash and mature within three months after the balance sheet date are treated as cash equivalents.
D)Investments in money market accounts cannot be treated as cash equivalents because they do not have a specific maturity date.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is true?
A)Investments in commercial paper or U.S.Treasury bills must be treated as cash equivalents.
B)Investments in stock cannot be treated as cash equivalents because they are not convertible into a known amount of cash.
C)Investments that are convertible into a known amount of cash and mature within three months after the balance sheet date are treated as cash equivalents.
D)Investments in money market accounts cannot be treated as cash equivalents because they do not have a specific maturity date.

Which of the Following Statements Is True