Short-term investments:

Question

Quizplus · Accepted Answer

Short-term investments refer to investments that are highly liquid and have a maturity period of one year or less. They are typically held as a temporary place to park funds while waiting for a more appealing long-term investment opportunity. Option C correctly defines short-term investments as investments that are held for one year or less, hence it is the correct answer. Option A is incorrect as it defines long-term investments. Option B is incorrect as it defines investments in which the investor holds less than 50% of the voting stock, which is not a requirement for short-term investments. Option D is incorrect as it refers to investments in debt securities that are held until maturity, which is not indicative of short-term investments.

Short-Term Investments