Short-term investments include:
A)Securities that management intends to convert to cash within the longer of one year or the current operating cycle,and are readily convertible to cash.
B)Funds earmarked for a special purpose such as bond sinking funds.
C)Stocks not intended to be converted into cash.
D)Bonds not intended to be converted into cash.
E)Sinking funds not intended to be converted into cash.

Question

Quizplus · Accepted Answer

Short-term investments are assets that management intends to convert to cash within one year or the current operating cycle. They must also be readily convertible to cash, which excludes options B, C, D and E from being short-term investments.

Short-Term Investments Include