What dollar amount will be included in "cash and cash equivalents"? $$\begin{array} { | l | r | }
\text { Treasury bills maturing in } 30 \text { days } & \$ 11,000 \
\hline \text { Investment in a money market fund } & 8,000 \
\hline \text { Cash restricted for plant expansion } & 1,000 \
\hline \text { Three-month term deposits } & 2,000 \
\hline
\end{array}$$

Question

What dollar amount will be included in "cash and cash equivalents"? $$\begin{array} { | l | r | } 
\text { Treasury bills maturing in } 30 \text { days } & \$ 11,000 \
\hline \text { Investment in a money market fund } & 8,000 \
\hline \text { Cash restricted for plant expansion } & 1,000 \
\hline \text { Three-month term deposits } & 2,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Treasury bills maturing in 30 days ($11,000) and investments in a money market fund ($8,000) are considered cash equivalents due to their high liquidity and short maturity period. Restricted cash ($1,000) and three-month term deposits ($2,000) are not included in cash equivalents. Therefore, the total is $11,000 + $8,000 = $19,000, which is not an option, indicating a mistake in the question or answer choices. However, based on the provided options and the typical inclusion criteria for "cash and cash equivalents," the closest correct approach without considering the error would be to add all items that are typically considered liquid or near-liquid assets, leading to an incorrect total based on the standard definitions. The correct practice is to include only the treasury bills and the money market fund, but due to the error in calculation or options provided, an exact match to the standard definitions isn't available.

What Dollar Amount Will Be Included in "Cash and Cash