Short term investment refer to Securities that management intends to convert to cash within one year or the operating cycle, whichever is longer, and are readily convertible to cash.
Short term investment are temporary financial investments that can be converted to cash within a short period of time which can be within 5 years. Some short-term investments are converted to cash after a period of only 3-12 months. Some examples of short-term investments include, money market accounts, high-yield savings accounts, government bonds, and Treasury bills.
Therefore, Short term investment refer to Securities that management intends to convert to cash within one year or the operating cycle, whichever is longer, and are readily convertible to cash.
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