FINANCIAL ACCT.FUND.(LOOSELEAF)
FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Chapter C, Problem 1QS
To determine

Short Term Investment:

Short term investment is the investment for short period generally for one year. The company invests in short term investment to fulfill the financial needs of the company. Short term investment shows under the current asset head of the balance sheet.

Long Term Investment:

Long term investment is the investment for long period generally for more than one year. The long term investment helps in the purchase of fixed assets, expansion, or for growth of the company. It shows under assets head of the balance sheet.

To identify: The given statement is true or not.

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Capital markets: a.apply only to bonds. b.apply only to stock. c.involve long-term investments. d.None of the above.
3. Cash equivalents are      a. Short-term and highly liquid investments that are readily convertible into cash b. Short-term and highly liquid investments that are readily convertible into cash with remaining maturity of three months c. Short-term and highly liquid investments that are readily convertible into cash with remaining maturity of three months d. Short-term and highly liquid marketable equity securities
(a. investment banking   b. insurance firms  c. commercial banking d. mutual fund  e. pension fund) is a transformer of short term liabilities to long term assets.       e     d     b     c     a
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