Q351
Financial securities that can be converted into cash at closing to their book value price are classified as
A.
inventories
B.
short-term investments
C.
cash equivalents
AnswerD.
long-term investments
Answer: Option C
Solution
Answer: Option C
Solution:
Financial securities that can be converted into cash at closing to their book value price are classified as cash equivalents. Cash equivalents are investments securities that are meant for short-term investing; they have high credit quality and are highly liquid.