To be classified as a short-term investment the investment must be readily marketable and intended to be converted into cash within the next year or operating cycle.

Question

Quizplus · Accepted Answer

Short-term investments are those that are intended to be converted into cash within the next year or operating cycle, whichever is longer. They are also readily marketable, meaning that they can be easily bought and sold in a liquid market. Examples of short-term investments include Treasury bills, commercial paper, and money market funds.

To Be Classified as a Short-Term Investment the Investment Must