Short-term investments include:
A. Funds earmarked for a special purpose such as bond sinking funds.
B. Bonds not intended to be converted into cash.
C. Sinking funds not intended to be converted into cash.
D. Stocks not intended to be converted into cash.
E. Securities that management intends to convert to cash within the longer of one year or the current operating cycle, and are readily convertible to cash.
Answer: E
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