Ask Question
BusinessBusiness
14 August, 17:11

Cash equivalents are securities that a. have maturity dates of 3 months or less. b. have maturity dates of at least 6 months. c. management intends to convert into cash within 1 year. d. management intends to convert into cash within the normal operating cycle.

+2
Answers (1)
  1. 14 August, 19:18
    0
    a. have maturity dates of 3 months or less

    Explanation:

    Cash equivalents refer to those short term highly liquid security investments such as marketable securities like commercial papers which can be converted into cash within 90 days or 3 months.

    Cash equivalents are characterized by their maturity period being 3 months or lesser.

    Commercial papers and certificate of deposits maturing in less than 3 months constitute cash equivalents.

    Two major characteristics of cash equivalents being, their maturity period being 3 months or lesser and their maturity value is not subject to fluctuations i. e it is known in advance.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Cash equivalents are securities that a. have maturity dates of 3 months or less. b. have maturity dates of at least 6 months. c. management ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The Dean's laissez faire attitude hit its zenith when he had missed five department chair meetings in a row despite the pressing needs of the MBA Curriculum Revision Team.
Answers (2)
Apple inc's ipod is the dominant product in the market for mp3 players. suppose that a technology company orange recently introduced an innovative mp3 player, which many consumers feel is a good substitute of the ipod. you would expect
Answers (2)
For20152015 , Wal-Mart and Target had the following information (all values are in millions of dollars) : Sales (Income Statement) Cost of Goods Sold (Income Statement) Accounts Receivable (Balance Sheet) Inventory (Balance Sheet) Wal-Mart481 comma
Answers (1)
What are 2 tools you can use to identify possible issues in a QuickBooks Online Company?
Answers (1)
The Montauk Company has a dividend reinvestment plan in which shareholders owning 27% of its common stock participate. Last year the firm's EPS was $4.20, and its payout ratio was 60%. There are 2 million shares of common stock outstanding.
Answers (1)
New Questions in Business
The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers =
Answers (1)
1. Why has Disney been successful for so long? 2. What did Michael Eisner do to rejuvenate Disney? Specifically, how did he increase net income in his first four years? 3. What can/should Disney do to grow? 4.
Answers (1)
George and Dan's political consulting firm is losing money, but it is more than covering its variable costs. What is the most accurate statement we can make about it?
Answers (1)
The company or organization identified in Chapter 11, Analytics in Action, is Group of answer choices Centers for Disease Control and Prevention Petrobras Intercontinental Hotels MeadWestvaco Corporation
Answers (1)
Davita Spencer is a manager at Half Dome Asset Management. She can generate an alpha of 2% a year up to $100 million. After that her skills are spread too thin, so she cannot add value, and her alpha is zero.
Answers (1)
Home » Business » Cash equivalents are securities that a. have maturity dates of 3 months or less. b. have maturity dates of at least 6 months. c. management intends to convert into cash within 1 year. d.
Sign Up Forgot Password?