Question

Investments representing short-term holding of securities would appear on the balance sheet as

(a) long-term liabilities,
(b) long-term assets,
(c) current assets,
(d) current liabilities,
(e) none of the above

Answer 1

Investments representing short-term holding of securities would appear on the balance sheet as current assets.

Step-by-step explanation:

The investments representing short-term holding of securities would appear on the balance sheet as current assets. Current assets are those assets that are expected to be converted into cash or used up within one year or the operating cycle of a business, whichever is longer. Examples of current assets include cash, marketable securities, accounts receivable, and inventory.