Temporary investments

Temporary investments are securities that can be sold in the near future, and for which there is an expectation of doing so. These investments are commonly used when a business has a short-term excess of funds on which it wants to earn interest, but which will be needed to fund operations within the near future. These types of investments are usually very safe, but also have quite a low rate of return. Temporary investments are classified as current assets on the balance sheet.

Examples of temporary investments are money market funds and treasury bills.