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    Question

    Which of the following is correct about cash

    equivalents?
    A Long-term investments held for strategic purposes Correct Answer Incorrect Answer
    B term, highly liquid investments readily convertible to known amounts of cash with insignificant risk of change in value Correct Answer Incorrect Answer
    C Inventories held for sale Correct Answer Incorrect Answer
    D Receivables due after 2 years Correct Answer Incorrect Answer
    E Depreciable assets Correct Answer Incorrect Answer

    Solution

    Cash equivalents typically include treasury bills, commercial paper maturing within 3 months, etc.

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