How do you determine short-term and long term investments in order to get operating assets?
submitted by Renee

jeff

Short-term investments are the ones that will be liquidated (turned to cash) or used up within a year. Long-term investments are the ones that the company plans to keep for more than a year.

dak_the_conqueror

From what I understand, short-term investments are things the company plans to sell or use pretty quickly, like within a year, to help with daily operations. Long-term investments are more like buying property or equipment that they'll keep for a longer time. I think it's mainly about how long they plan to hold or use the asset.

Kelly

Basically 1 year is your cutoff. If the investment will last more than a year, it's long term. Anything less is short term.