If the maturity date of Treasury bills is less than 90 days,they are classified as
A)cash equivalents
B)short-term investments
C)long-term investments
D)current liabilities

Question

Quizplus · Accepted Answer

Treasury bills with maturity dates less than 90 days are considered a readily marketable security with a high degree of liquidity and little risk of changes in value. Therefore, they are classified as cash equivalents in financial statements.

If the Maturity Date of Treasury Bills Is Less Than