Asked by Jusseth Hernandez on May 20, 2024
Verified
An investment is readily marketable if it is management's intent to sell the investment.
Readily Marketable
Assets that can be quickly converted into cash with minimal impact on their price.
Management's Intent
The intentions or planned actions of a company's management, often related to investments, operations, or financial decisions.
- Understand the importance of marketability and intention in determining whether investments are classified as short-term or long-term.
Verified Answer
BC
Bethany CurtisMay 26, 2024
Final Answer :
False
Explanation :
An investment is considered readily marketable based on its ability to be quickly sold at a price close to its market value, not merely on management's intent to sell it.
Learning Objectives
- Understand the importance of marketability and intention in determining whether investments are classified as short-term or long-term.
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