Definition of 'Short-Term Investments

May 19th, 2015
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An account in the current assets section of a company's balance sheet. This account contains any investments that a company has made that will expire within one year.

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Definition of 'Short-Term Investments'An account in the current assets section of a company's balance sheet. This account contains any investments that a company has made that will expire within one year.For the most part, these accounts contain stocks and bonds that can be liquidated fairly quickly.Investopedia explains 'Short-Term Investments'Most companies in a strong cash position have ashort-term investments accounton the balance sheet. This means thata companycan afford to invest excess cash in stocks and bonds to earn higher interest than what would beearned from a normal savings account.Microsoft, which is always in a strong cash position, had short-term investments totaling approximately $32 billion at the end of 2005.Investopedia explains 'Restricted Cash'Restricted cash can be designated for a range of purposes such as loan repayment, e

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