Marketable securities are a substitute for which of the following?
A)a substitute for cash balances
B)a substitute for long-term debt
C)a substitute for holding accounts payable
D)a substitute for investments in inventory

Question

Quizplus · Accepted Answer

Marketable securities refer to easily tradable securities that can be converted into cash quickly. Therefore, they are a substitute for cash balances and provide liquidity to the company. They are not a substitute for long-term debt, holding accounts payable, or investments in inventory.

Marketable Securities Are a Substitute for Which of the Following