Short-Term Investments

question 21

Multiple Choice

Short-term investments:

• A)Are securities that management intends to convert to cash within one year or an operating cycle,whichever is longer.
• B)Include funds earmarked for a special purpose such as bond sinking funds.
• C)Include stocks not intended to be converted into cash.
• D)Include bonds not intended to be converted into cash.
• E)Include sinking funds not intended to be converted into cash.

---

Definitions:

Sliding Caliper

A type of floating disc brake caliper that is mounted on sliding keyways.

Disc Brakes

A type of brake system where brake pads apply pressure to a disc or rotor attached to the wheel, slowing or stopping the vehicle.

Drum Brakes

A type of brake that uses friction caused by a set of shoes or pads that press outward against a rotating cylinder-shaped part called a drum.

Brake Fade

The reduction in braking power that occurs after repeated or sustained use, often due to overheating of the brake components.