Examveda
Examveda

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

D. long-term investments

Answer: Option C

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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