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 a short-term investments account on the balance sheet. This means that a company can afford to invest excess cash in stocks and bonds to earn higher interest than what would be earned 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, equipment purchase or investments. It may be classified as a current or non-current asset, depending on when it is expected to be used. Expected usage of restricted cash within one year of the balance sheet date would necessitate it to be classified as a current asset; expected usage more than a year out would require it to be classified as a non-current or long-term asset.
Cash and cash equivalents are the most liquid assets found within the asset portion of a company's balance sheet. Cash equivalents are assets that are readily convertible into cash, such as money market holdings, short-term government bonds or Treasury bills, marketable securities and commercial paper. Cash equivalents are distinguished from other investments through their short-term existence; they mature within 3 months whereas short-term investments are 12 months or less, and long-term investments are any investments that mature in excess of 12 months. Another important condition a cash equivalent needs to satisfy is that the investment should have insignificant risk of change in value; thus,common stock cannot be considered a cash equivalent, but preferred stock acquired shortly before its redemption date can be.

\The term cash and cash equivalents includes: currency, coins, checks received but not yet
deposited, checking accounts, petty cash, savings accounts, money market accounts, and short-term, highly liquid investments with a maturity of three months or less at the time of purchase such as U.S. treasury bills and commercial paper. The items included as cash and cash equivalents must also be unrestricted.

The amount of cash and cash equivalents will be reported on the balance sheet as the first item in the listing of current assets. The change in the amount of cash and cash equivalents during an accounting period is explained by the statement of cash flows.
Cash and cash equivalents are the most liquid assets that are reported in the asset section of a companys balance sheet. It is the first account of your balance sheet and accordingly in your chart of accounts. Cash includes money and any other negotiable instrument that is payable in money and acceptable by the bank for deposit and immediate credit. This means that cash includes bills, coins, checks, bank drafts and money orders because they are acceptable by the bank for deposit or immediate encashment. Postdated checks are not considered as cash yet because these checks are unacceptable by the bank for deposit and immediate credit or outright encashment. These checks will only be considered as cash when their indicated dates arrive. Cash must be unrestricted in use. This means that an item to be recognized and reported as cash must be readily available in the payment of current obligations and not subjected to any restrictions. Cash equivalents are short-term and highly liquid investments that are readily convertible into cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The International Accounting Standard (IAS) further states that only highly liquid investments that are acquired three month before maturity can qualify as cash equivalents. Cash equivalents include three-month time deposits, threemonth money market instruments, and three-month treasury bill. Equity securities cannot qualify as cash equivalents since shares of stocks do not have a maturity date.

Current assets
Value of cash, accounts receivable, inventories, marketable securities and other assets that could be converted to cash in less than 1 year.
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Cash Conversion Cycle

The time between an expenditure of money to make a product and the collection of accounts receivable from the sale of that product. Obviously, a shorter cash conversion cycle is preferable. A longer cash conversion cycle may indicate a current or potential problem with cash flow.

Current Assets
Cash and other assets expected to be converted to cash within a year. Examples include accounts receivable, prepaid expenses, and many negotiable securities. Current assets are calculated on a balance sheet and are one way to measure a company's liquidity. Current assets tend not to add much to the company's assets, but help keep it running on a day-to-day basis. See also: Fixed asset, Gross working capital.