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A company considers all highly liquid investments with an original maturity date of three months or less to be cash equivalents. What adjustments, if any,
A company considers all highly liquid investments with an original maturity date of three months or less to be cash equivalents. What adjustments, if any, should be made to due to this policy of accounting of cash and cash equivalents?
- No adjustment is required because this is not a creative accounting issue.
- Cash and cash equivalents should include cash and only the investments maturing within one month.
- Investments should be excluded from cash and cash equivalents.
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