Cash equivalents are A. treasury bills, commercial paper, and money market funds purchased with excess cash B. investments with original maturities of three months or less C. readily convertible into known amounts of cash D. all of these It is an objective of the statement of cash flows to A. disclose changes during the period in all asset and all equity accounts B. disclose the change in working capital during the period C. provide information about the operating, investing, and financing activities of an entity during a period D. none of thesesupport your answers please!

D and C

The first question is hard because cash equivalents is what the accountants say it is and "C" makes the best choice. "A" doesn't consider the maturity of these instruments as treasury bills can mature in 6 months (26 weeks) and commercial paper has maturity of up to 270 days. "C" also fails to capture the maturity and the costs involved to convert the asset into cash. Since I question the validity of "A" and "C", I can't choose "D."For the second question, it's wording is just as bad as the first question. Here, I would choose "C" being the best answer -- given it vagueness, that sentence could mean anything.

for the first one the answer is d because those stated in letter A are marketable securities and are considered as cash equivalents same as B because of its short term time horizon... cash equivalents are basically same as cash and are readily convertible...second would be c because the compositions of a statement of cash flow are cash inflows and outflows from operating, investing and financing activities of the company...do check if my answer is correct.. that's all i can remember...