Which of the following statements regarding cash equivalents is incorrect? a. most companies include additional information about cash and cash equivalents in the footnotes to their financial statements. b. because cash equivalents are less liquid than cash, they must be reported separately from the cash account. c. cash equivalents include highminusgrade u. s. or foreign government securities that are very close to maturity (three months or less at the time of purchase). d. cash equivalents are sufficiently similar to cash and thus can be reported along with cash on the balance sheet.

B. Because cash equivalents are less liquid than cash, they must be reported separately from the Cash account

Explanation:

The combined amount of cash and cash equivalents will be reported on the balance sheet as the first line item in the section with the heading current assets.

These cash equivalents are short-term, highly liquid investments with a maturity date that was 3 months or less at the time of purchase.

In other words, there is very little risk of collecting the full amount being reported.

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.