Asked by Jordan Edmundson on Jun 29, 2024
Verified
Cash equivalents include short-term investments that will be converted to cash within 120 days.
Cash Equivalents
Short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.
- Comprehend the strategies employed by banks and businesses for the management and reporting of cash and its equivalents.
Verified Answer
SW
Steve WoolacottJul 01, 2024
Final Answer :
False
Explanation :
Cash equivalents include 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, typically within 90 days.
Learning Objectives
- Comprehend the strategies employed by banks and businesses for the management and reporting of cash and its equivalents.
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