To qualify as a marketable security the investment must be r

To qualify as a marketable security, the investment must be readily marketable and it must be the intent of management to convert the investment to cash within the current operating cycle or a year, whichever is longer.

true

false

Solution

The statement is true because a marketable security must be readily marketable and management must try to convert the investment to cash in longer of the two periods-current operating cycle and year.