Investments in debt securities that the company actively manages and trades for profit are referred to as short-term investments in:
A)Available-for-sale securities.
B)Held-to-maturity securities.
C)Trading securities.
D)Realizable securities.
E)Liquid securities.

Question

Quizplus · Accepted Answer

Short-term investments that are actively managed and traded for profit are referred to as trading securities. Available-for-sale securities are debt or equity securities that are not expected to be held until maturity, while held-to-maturity securities are debt securities expected to be held until maturity. Realizable securities refer to the ability to convert an asset into cash. Liquid securities are securities that can be easily bought and sold in the market.

Investments in Debt Securities That the Company Actively Manages and Trades