In order to be classified as a cash equivalent, an investment must have a maturity date of

Question

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Cash equivalents are highly liquid assets that can be easily converted into cash within a short period of time, typically with a maturity date of three months or less. Therefore, the best choice is D, which indicates a maturity date of three months or less. Choices A, B, and C have maturity dates that are too long to be considered as cash equivalents.

In Order to Be Classified as a Cash Equivalent, an Investment