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- This topic has 5 replies, 2 voices, and was last updated 3 years ago by
John Moffat.
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- August 3, 2021 at 11:39 am #630250
Are inventories our short-term investments?
August 3, 2021 at 6:49 pm #630295Not normally, but tell me why you are asking 🙂
August 4, 2021 at 9:28 am #630350I have read that when business cash flow forecast is in deficit so it should sell its short term investment to make less deficit.
That is why I am asking that short term investment includes inventories too? Or it only means bonds, shares, CDs and marketable securities.
And, inventories are giving kind of feeling of investment. Like we buy inventory so our money is not earned until we sell it. As it is current asset so it makes it short term investment-esque.August 4, 2021 at 3:36 pm #630376No. They will not sell inventories simply to reduce a deficit – they will be selling their inventories anyway because that is what trade is 🙂
I am not sure why you are asking this because it is not relevant for Paper MA.
August 5, 2021 at 8:15 am #630448Right sir.
August 5, 2021 at 3:57 pm #630493You are welcome 🙂
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