Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 7 - Using Your Judgment - Financial Reporting - Instructions - Page 422: a

Answer

Highly liquid investments with maturities of three months and below when acquired are classified as cash equivalents and recorded at cost.

Work Step by Step

Under “Cash Equivalents” in its notes to the consolidated financial statements, P&G indicates: “Highly liquid investments with maturities of three months or less when purchased are considered cash equivalents and recorded at cost.”
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