An investment normally qualifies as a cash equivalent only in cash flow statement when it has a maturity of ...... months or less from the date of acquisition.

3

The correct answer is option 3- 3.

‘Cash equivalents’ means short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. An investment normally qualifies as cash equivalents only when it has a short maturity, of say, three months or less from the date of acquisition.