Stock trading system – They are the most liquid, the most readily convertible items that a company owns.

Cash, of course, is dollars on hand or in the bank. U. S. Government securities may be bonds or other Treasury obligations into which the company has sunk some excess cash to earn interest while being held in a safe and highly marketable form. Accounts and notes receivable means money owed to the company by its customers; for California Standard, this could be five gallons of gas charged to a Chevron credit card or 100,000 gallons of jet fuel for the Air Force. These are short-term receivables.

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