The valuation of short-term marketable securities on the balance sheet is likely to be for an amount that is approximately equal to the cost of these investments because:

Question

01-06-2021
Business

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The valuation of short-term marketable securities on the balance sheet is likely to be for an amount that is approximately equal to the cost of these investments because:

Sagot :

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AbsorbingMan AbsorbingMan · Answer 1 · 2021-06-02T20:25:19-04:00

Answer:

the high quality and close maturity date of the securities cause their market values to be relatively stable.

Explanation:

The short-term marketable securities are also known by the names like short term investments or by the name temporary investments or marketable securities. These are all financial securities or investments that can be converted into cash after a fixed period.

The valuation of these short term securities is the amount of money which is nearly equal to the cost of the investment done as the high quality as well as the close maturity of these securities makes the market values relatively stable.

Sagot :

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