Final answer:
Marketable securities are temporary investments in bonds and stocks that are highly liquid and easily convertible to cash.
Explanation:
Marketable securities are temporary investments of excess cash in bonds and stocks that can readily be converted into cash. These securities are highly liquid financial assets that organizations hold for short periods to earn a return on idle funds. They are classified as current assets on the balance sheet.
Investments in marketable securities are considered safer and more liquid than other types of investments, making them a popular choice for organizations looking to park excess cash temporarily. The value of marketable securities can be easily determined as they have clear market prices, facilitating quick conversion to cash if needed.
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