Investments in short-term marketable securities are categorized as:

Question

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Investments in short-term marketable securities are typically considered near-cash investments because they are highly liquid and can be easily converted to cash if needed. This category of investments is often used by companies as a way to temporarily park excess funds or to generate a small return while maintaining a high level of liquidity. Operational investments relate to the day-to-day activities of the business, speculative investments involve a higher degree of risk, and strategic investments are made with a specific long-term plan or goal in mind.

Investments in Short-Term Marketable Securities Are Categorized As