131k views
2 votes
Short-term investments​ ________. A. are investments in debt and equity securities that are readily marketable and that the investor intends to convert to cash within one year B. are investments in debt securities that the investor intends to hold until maturity

User Rkersh
by
4.0k points

1 Answer

6 votes

Answer:

the correct answer is A. are investments in debt and equity securities that are readily marketable and that the investor intends to convert to cash within one year

Step-by-step explanation:

the main difference between the long term and short term investments are the investors intention to hold on to it. generally, investments such as cash and cash equivalents, credit card balances, treasury bills, commercial papers are considered short term and investors seek to get their return on within a time span less than a year.

Moreover, the liquidity of these investments are high as well. meaning that they can easily be converted in to cash within a short period of time.

User Stepan Grigoryan
by
3.1k points