Which of the Following Would Not Be Classified as a Short-Term

question 25

Multiple Choice

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 equity securities.
• D) Marketable debt securities.

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Definitions:

Equity

The ownership interest of shareholders in a corporation, represented by their shares.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.

Equity

Refers to the ownership interest held by shareholders in a corporation, measured by the portion of the company's capital that they own outright without any debts.

Dividends

Payments made by a corporation to its shareholders, typically from profits.