Which of the following items would not be classified as either cash or a cash equivalent for purposes of the statement of cash flows?

Question

Quizplus · Accepted Answer

The Treasury bill that matures in three years would not be considered a cash equivalent for the statement of cash flows. Cash equivalents are short-term investments that can be easily converted into a known amount of cash and have a maturity date of less than three months from the date of purchase. The Treasury bill that matures in three years does not meet this criteria. The other options listed (money market account funds, a Treasury bill that matures in three months, and checking account funds) would all be considered cash or cash equivalents.

Which of the Following Items Would Not Be Classified as Either