Investments in debt and equity securities that the company actively manages and trades for profit are referred to as short-term investments in:

Question

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Short-term investments that a company actively manages and trades for profit are classified as held-for-trading securities. This classification applies to securities bought and held by a company with the intention of selling them in the near term to profit from short-term price fluctuations. Available-for-sale securities (A) are investments that are not expected to be sold in the near term, and held-to-maturity securities (B) are investments that are held until maturity. Realizable securities (D) and liquid securities (E) are not commonly used accounting classifications for investments.

Investments in Debt and Equity Securities That the Company Actively