Asked by
Lloyd Dunbar
on Nov 14, 2024
Verified
When investing excess cash for short periods of time,
A) corporations generally invest in equity securities.
B) corporations generally invest in debt securities that have both high liquidity and high risk.
C) corporations generally invest in debt securities that have high risk and low liquidity.
D) corporations generally invest in debt securities that have low risk and high liquidity.
Debt Securities
Financial instruments representing money borrowed that must be repaid, including bonds, notes, and bills.
Equity Securities
Equity securities are financial assets representing ownership interest in a company, such as stocks, and can generate income through dividends or capital gains.
- Become familiar with the attributes and classification system of strategic investments.
- Ascertain the benchmarks for the identification of investments as current assets and their appraisal at fair value.
Verified Answer
JB
Learning Objectives
- Become familiar with the attributes and classification system of strategic investments.
- Ascertain the benchmarks for the identification of investments as current assets and their appraisal at fair value.
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