Which of the Following Is an Incorrect Statement Regarding Short-Term

question 201

Multiple Choice

Which of the following is an incorrect statement regarding short-term investments?

• A) Short-term investments are also called marketable securities.
• B) Short-term investments are easily convertible to cash.
• C) Short-term investments must be held for less than three months.
• D) Short-term investments allow a company to invest cash and earn a return.

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Definitions:

Inventory Turnover

A measure of how quickly a company sells and replaces its stock of goods within a given period.

Financial Ratios

Quantitative measures that are used to gauge the financial health of a business by evaluating its performance and financial condition.

External Benchmarking

The process of comparing an organization's performance, processes, or products against those of leading companies in the same or a different industry to identify best practices.

Financial Targets

Specified goals related to the financial performance of an organization, such as revenue, profits, or return on investment.