An Investment That Must Be Readily Convertible to Known Amounts

Multiple Choice

An investment that must be readily convertible to known amounts of cash, that issubject to insignificant risk of changes in value, and normally qualifies only when it has a short maturity of three months or less from the date of acquisition is called an) :

A) Financing activity.
B) Cash equivalent.
C) Operating activity.
D) Trading security.
E) Treasury bill, commercial paper, or equity security.