What amount will be included in "cash and cash equivalents"? $$\begin{array} { | l | r | }
\hline \text { Euro treasury bills maturing in } 140 \text { days } & \$ 12,000 \
\hline \text { U.S. treasury bill maturing in } 120 \text { days } & 18,000 \
\hline \text { Bonds of a publicly traded U.S. company } & 10,000 \
\hline \text { U.S. dollars on hand } & 24,000 \
\hline
\end{array}$$

Question

What amount will be included in "cash and cash equivalents"? $$\begin{array} { | l | r | } 
\hline \text { Euro treasury bills maturing in } 140 \text { days } & \$ 12,000 \
\hline \text { U.S. treasury bill maturing in } 120 \text { days } & 18,000 \
\hline \text { Bonds of a publicly traded U.S. company } & 10,000 \
\hline \text { U.S. dollars on hand } & 24,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

"Cash and cash equivalents" generally includes cash on hand and any short-term investments that can be quickly converted to cash, typically within 90 days. In this case, only the U.S. dollars on hand ($24,000) meet this criterion, so the answer is choice C. The Euro treasury bills and U.S. treasury bills could be considered cash equivalents, but they have maturation dates that exceed the 90-day threshold. The bonds are not considered a cash equivalent.

What Amount Will Be Included in "Cash and Cash Equivalents