For an Investment to Qualify as a Cash Equivalent, It

Multiple Choice

For an investment to qualify as a cash equivalent, it must be readily convertible to a known amount of cash and which of the following is correct?

A) It must be identified as a cash equivalent on the statement of earnings.
B) It must mature within 4 months.
C) The investment must have a known foreign exchange rate.
D) Must be sufficiently close to its maturity date so that its market value is relatively insensitive to interest rate changes.