Acash equivalent is a short-term, highly liquid investment that is readily convertible into known amounts of cash and a. bears an interest rate that is at least equal to the prime rate of interest at the date of liquidation. b. is so near its maturity that it presents insignificant risk of changes in interest rates. c. is acceptable as a means to pay current liabilities. d. has a current market value that is greater than its original cost.

Robert black, regional manager for ford in texas and oklahoma, faced a dilemma. the ford f-150 pickup truck was the best-selling pickup ever, yet ford's headquarters in detroit had decided to introduce a completely redesigned f-150. how could mr. black sell both trucks at the same time? he still had "old" f-150s in stock. in his advertising, mr. black referred to the new f-150s as follows: "not a better f-150. just the only truck good enough to be the next f-150." this statement represents ford's of the new f-150.