1. Cash equivalents are defined as short-term, highly-liquid investments with original maturities of:

Select one:

a.

no more than 10 days.

b.

no more than 30 days.

c.

no more than 90 days.

d.

no more than one year.

e.

None of these.

2. Which of the following statements is true?

Select one:

a.

In a capital lease, the lessee records the asset on its books.

b.

A lessee will record depreciation expense for an operating lease.

c.

An operating lease results in the recording of a liability and interest.

d.

All of these.