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 are indeed available for liquidity purposes, as they can be quickly converted into cash, thus serving as a substitute for cash to meet short-term financial obligations or opportunities.

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