Question

Cash equivalents a.will be converted to cash within 120 days b.will be converted to cash within two years c.are illegal in some states d.will be converted to cash within 90 days

Answer 1

d. will be converted to cash within 90 days

Step-by-step explanation:

The total assets comprise of current assets, fixed assets, and the intangible assets

The current assets include cash, stock, account receivable, etc

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, goodwill, etc.

The cash and cash equivalents are quick assets which are converted within 90 days and the other current assets are converted within one year. This is the more liquid assets that are converted in very less time. It includes marketable securities, treasury bills, etc