Short-term investments:
A)Are securities that management intends to convert to cash within the longer of one year or the current operating cycle,and are readily convertible to cash.
B)Include funds earmarked for a special purpose such as bond sinking funds.
C)Include stocks not intended to be converted into cash.
D)Include bonds not intended to be converted into cash.
E)Include sinking funds not intended to be converted into cash.

Question

Quizplus · Accepted Answer

Short-term investments are defined as securities that management intends to convert to cash within the longer of one year or the current operating cycle, and are readily convertible to cash. Choices B, C, D, and E do not meet this definition of short-term investments.

Short-Term Investments