Short-term investments are readily convertible to cash and are intended to be converted into cash within one year or the operating cycle,whichever is longer.

Question

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Short-term investments are defined as investments that can be quickly converted into cash within a year or the operating cycle of the company, whichever is longer. Examples of short-term investments include money market funds, treasury bills, and certificates of deposit.

Short-Term Investments Are Readily Convertible to Cash and Are Intended