The term commonly used to refer to short-term investments that have a maturity date no longer than three months from the date of purchase is:
A)Accounts receivable.
B)Cash equivalents.
C)Accounts payable.

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid and easily convertible into cash, with a short-term maturity typically less than three months. Accounts receivable are the funds owed to a company by its customers for goods or services that have already been sold but not yet paid for, and accounts payable are the funds owed by a company to its suppliers for goods or services that have already been purchased but not yet paid for.

The Term Commonly Used to Refer to Short-Term Investments That