Investments classification:
Investments can be classified into two types from the point of view of the period of holding the investment. These types are short term and long term. A short-term investment is usually made for period of less than a year and a long-term investment is made for the longer period.
1. Reason for investment in debt or equity securities
To identify: The reason for investment in debt or equity securities.
Solution: G H may choose to invest in debt or equity security because it would need the cash back in short term.
2. Classification of investment
To identify: The Classification of investment
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