Chapter 15, Problem 1E

Debt and equity securities and short- and long-term investments

Complete the following descriptions by filling in the blanks using the terms or phrases a through g.

1. a. not intended
2. b. not readily
3. c. cash
4. d. operating cycle
5. e. one year
6. f. owner
7. g. creditor
8. 1. Debt securities reflect a _____ relationship such as investments in notes, bonds, and certificates of deposit.
9. 2. Equity securities reflect a(n) _____ relationship such as shares of stock issued by companies.
10. 3. Short-term investments are securities that (1) management intends to convert to cash within _____ _____ or the _____ _____, whichever is longer, and (2) are readily convertible to _____.
11. 4. Long-term investments in securities are defined as those securities that are _____ _____ convertible to cash or are _____ _____ to be converted into cash in the short term.