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I of 10
Definition 4)) Term 4))
Short-term, HIGHLY LIQUID What is a cash equivalent?
investments
Maturity date must be less than or
equal to 3 months
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Term 4)
Comparison between Direct and
, Indirect 2 of 10
Definition 4))
Short-term, HIGHLY LIQUID
investments
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Maturity date must be less than
True
or equal to 3 months
Correct definition
False
False
Direct: Focuses on Individual cash flow
Indirect: FOCUSes on Overall cash flow
3 of 10
Definition 4))
Add: Anything that causes money to come into the company
Ex: Sale of PPE
Subtract: Anything that causes money to go out of the company
Buying of PPE