Debt: It indicates that amount which borrowed by an individual from another on some terms and conditions. Equity: The equity term indicates the ownership hold by shareholders as shares of that particular company. Short-term investments: It includes such investments which are highly liquid in nature as these can be convert in form of cash easily during the period of 1 year. Long-term investments: It includes such investments which are not highly liquid in nature and mature after completion of period of minimum one year. To identify: The appropriate terms for completion of given descriptions.

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Chapter C, Problem 1E

To determine

Debt:

It indicates that amount which borrowed by an individual from another on some terms and conditions.

Equity:

The equity term indicates the ownership hold by shareholders as shares of that particular company.

Short-term investments:

It includes such investments which are highly liquid in nature as these can be convert in form of cash easily during the period of 1 year.

Long-term investments:

It includes such investments which are not highly liquid in nature and mature after completion of period of minimum one year.

To identify: The appropriate terms for completion of given descriptions.

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