• Accounting for Short-term Investments
• Why Make Short-term Investments?
• How to Calculate Working Capital on the Balance Sheet
• Short-term Investments on Balance Sheet Example

Short-term investments are investments in certain projects or assets for a period of up to 1 year in order to increase the money.

In simple words, an investment in the short term is when you invest money in someone's business, internet project, securities, etc. for a period not exceeding 12 months.

The cost-effectiveness and liquidity of such investments depend on where you invest your money and how big the risks are. Most often it is 3-20% of the invested amount.

Many companies are attracted by such investments with their short term. This is because 1 year is a rather short time, which is well predictable. It is enough to assess the political situation in the country and to observe changes in the national currency rate.

The main short-term investment options are listed below: