Exercise 15-1 Debt and equity securities and short- and long-term investments LO C1 Complete the following descriptions by selecting the appropriate option 1. Debt securities reflect a 2. Equity securities reflect a(n) 3. Short-term investments are securities that (1) management intends to convert to cash within relationship such as investments in notes, bonds, and certificates of deposit. relationship such as shares of stock issued by companies. whichever is longer, and (2) are readily convertible to 4. Long-term investments in securities are defined as those securities that are convertible to cash or are to be converted into cash in the short term