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Question Practice

Which criterion must an investment meet to be classified as a cash equivalent?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Accountancy
Accountancy Part - II
Cash Flow Statement
Question Bank

Which criterion must an invest...

Single Answer MCQ
Q-00083006

Which criterion must an investment meet to be classified as a cash equivalent?

1

It must be held for at least one year.

2

It must be readily convertible to cash and have a short maturity.

3

It must produce dividends.

4

It must be traded in the market.

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