Short-term marketable securities are held for two separate and distinct purposes: (1) to provide liquidity as a substitute for cash and (2) as a non-operating investment.Marketable securities held while awaiting reinvestment are not available for liquidity purposes.

Question

Quizplus · Accepted Answer

Marketable securities held while awaiting reinvestment can still be used for liquidity purposes as they are still readily convertible to cash.

Short-Term Marketable Securities Are Held for Two Separate and Distinct