Asked by Ariana Gonzalez on Jun 27, 2024
Verified
Which of the following would not be classified as a short-term investment?
A) Short-term commercial paper
B) Idle cash in a bank checking account
C) Marketable stock securities
D) Marketable debt securities
Marketable Debt Securities
Investments in bonds or other debt securities that are available for sale before their maturity date.
Idle Cash
Refers to the money that a company has not invested or used in any way to earn more income.
- Identify and differentiate various types of investment assets a company may acquire.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
B
Explanation :
Idle cash in a bank checking account is not classified as a short-term investment because it is not invested and does not earn interest. Short-term commercial paper, marketable stock securities, and marketable debt securities are all examples of short-term investments.
Learning Objectives
- Identify and differentiate various types of investment assets a company may acquire.
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