Identifying why companies invest and classifying, Accounting Basics

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Identifying why companies invest and classifying

Question: Identifying why companies invest and classifying investments Garden Haven has excess cash of $15,000 at the end of the harvesting season. Garden Haven will need this cash in four months for normal operations.

Requirements: 1. What are some reasons why Garden Haven may choose to invest in debt or equity securities?

2. What type of classification would Garden Haven's investment fall within- short-term or long-term? Why?

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Accounting Basics: Identifying why companies invest and classifying

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Accounting Basics: Identifying why companies invest and classifying

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