Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

Q2QS_3

Expert-verified
Financial & Managerial Accounting
Found in: Page 305
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Choose from the following list of terms/phrases to best complete the following statements.

a. Cash c. Outstanding check e. Bank reconciliation

b. Cash equivalents d. Liquidity f. Current assets

3. The __________ category includes short-term, highly liquid investment assets that are readily convertible to a known cash amount and sufficiently close to their due dates so that their market value is not sensitive to interest rate changes.

The correct option for this statement is Cash Equivalent.

See the step by step solution

Step by Step Solution

Step 1: Introduction to basic

The cash equivalents class incorporates short-term, highly liquid investment assets meeting two criteria:

(1) promptly convertible to a realized money sum and

(2) adequately near their due dates with the goal that their reasonable worth isn't touchy to loan fee changes.

Step 2: The term that completes statement is-

The cash equivalents category includes short-term, highly liquid investment assets that are readily convertible to a known cash amount and sufficiently close to their due dates so that their market value is not sensitive to interest rate changes.

Most popular questions for Business-studies Textbooks

Icon

Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.