Ownership of debt instruments of the government and other companies that can be readily converted to cash are best reported as:
A)long-term investments.
B)cash.
C)marketable securities.
D)intangibles.
E)inventory of near-cash items.

Question

Quizplus · Accepted Answer

Debt instruments that can be readily converted to cash are called marketable securities. They are usually classified as short-term investments on the balance sheet because they can be quickly converted into cash.

Ownership of Debt Instruments of the Government and Other Companies