Asked by Corien Frazier on Jun 11, 2024
Verified
Available-for-sale securities are classified as
A) short-term investments only.
B) long-term investments only.
C) either short-term or long-term investments.
D) current assets only.
Available-For-Sale Securities
Financial assets that are purchased with the intent of selling before they reach maturity or when favorable market conditions exist.
Short-Term Investments
Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle, whichever is longer.
Long-Term Investments
Investments that are not readily marketable or that management does not intend to convert into cash within the next year or operating cycle, whichever is longer.
- Distinguish and organize diverse investment options a company might maintain.
Verified Answer
Learning Objectives
- Distinguish and organize diverse investment options a company might maintain.
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