Examlex

Solved

What Are the Three Basic Characteristics of Short-Term Securities? Briefly

question 155

Essay

What are the three basic characteristics of short-term securities? Briefly explain each.


Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.

Investing Activity

Transactions involving the purchase or sale of long-term assets and other investments not included in cash equivalents.

Return on Assets

A financial ratio indicating how profitable a company is relative to its total assets, measuring the efficiency of asset use.

Leverages

The use of borrowed money (debt) in addition to equity in the investment to finance the purchase of assets and increase the potential return on investment.

Related Questions