Often equivalent to six months or one year of the operating budget, are generally invested in very secure, short-term instruments such as bank certificates of deposit or money market funds.
A) operating budgets
B) cash flows
C) operating reserves
D) unrestricted funds

Question

Quizplus · Accepted Answer

The given statement is referring to "operating reserves." These reserves are usually equivalent to six months or one year of the operating budget and are kept in secure, short-term investments. Therefore, option C is the correct choice.

Often Equivalent to Six Months or One Year of the Operating