Short-Term Investments Are Intended to Be Converted into Cash Within

question 115

True/False

Short-term investments are intended to be converted into cash within the longer of one year or the operating cycle of the business,and are readily convertible to cash.

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Definitions:

Cash

A form of liquid asset that includes currency and other assets that are readily convertible to known amounts of cash and can be used to settle debts, purchases, or other transactions.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business.