To qualify as a marketable security,the investment must be readily marketable and it must be the intent of management to convert the investment to cash within the current operating cycle or a year,whichever is longer.

Question

Quizplus · Accepted Answer

A marketable security is defined as an investment that is readily marketable and intended to be converted to cash within the current operating cycle or a year, whichever is longer. Therefore, statement A is correct.

To Qualify as a Marketable Security,the Investment Must Be Readily