U.S. Treasury notes must mature within ________ days of the Balance Sheet date in order to be considered cash equivalents.

Question

Quizplus · Accepted Answer

According to Generally Accepted Accounting Principles (GAAP), cash equivalents must have a maturity period of 90 days or less from the date of acquisition to be considered as a cash equivalent on the balance sheet. Therefore, U.S. Treasury notes must mature within 90 days of the balance sheet date to be considered as cash equivalents. Choices A, C, and D are incorrect because they exceed the 90-day maturity period.

US Treasury Notes Must Mature Within ________ Days of the Balance