Question

Investments in debt securities that the company actively manages and trades for profit are referred to as short-term debt investments in:

Answer 1

Answer: c. trading securities.

Explanation:

Trading securities are short term debt securities that a company buys in order to make a profit in that short term period. They actively manage and trade these securities and then trade them for profit.

It is an excellent way to gain return for any excess cash that the business has and they only invest in such things when they believe that there is a good chance of profit being made.