Which of the following statements regarding cash equivalents is correct?
A) A one-year Treasury note could not qualify as a cash equivalent.
B) All investments meeting the FASB's criteria for cash equivalents must be reported as such.
C) The date a security is purchased determines its "original maturity" for cash equivalent classification purposes.
D) Once established,management's policy for classifying items as cash equivalents cannot be changed.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements regarding cash equivalents is correct?
A) A one-year Treasury note could not qualify as a cash equivalent.
B) All investments meeting the FASB's criteria for cash equivalents must be reported as such.
C) The date a security is purchased determines its "original maturity" for cash equivalent classification purposes.
D) Once established,management's policy for classifying items as cash equivalents cannot be changed.

Which of the Following Statements Regarding Cash Equivalents Is Correct