Question

1. an objective in purchasing temporary investments is to earn interest revenue. receive dividends. realize gains from increases in the market price of the securities. all of these choices are correct.

Answer 1

The market price of the securities to earn better interest rates, financial managers frequently move short-term cash from checking accounts to marketable securities. operational strategic administrative marketable commercial group of answer options.

A security is a document or other type of financial asset with monetary worth that may be traded. Securities are typically divided into two categories: debt securities and equity securities. Equity securities include stocks, bonds, and debentures.One of the most prevalent types of marketable securities is an ETF, along with stocks, bonds, preferred shares, and cash.

The word "temporary investment" refers to investments that are short-term or of a temporary nature and consist of marketable securities, cash, and cash equivalents such as bank accounts.This short-term investment is listed as a current asset on the asset side of the balance sheet, reflecting the company organization's liquidity since these goods would be converted in less than a year.

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