Final answer:
A temporary investment or short-term marketable security is listed under current assets on a company's balance sheet.
Step-by-step explanation:
Temporary investments or short-term marketable securities are categorized as current assets on the balance sheet. The balance sheet, often visualized as a T-account with assets on one side and liabilities and shareholders' equity on the other, highlights the financial position of a company at a specific point in time. Current assets, including temporary investments, are assets expected to be converted into cash or consumed within one year or the operating cycle, whichever is longer.
This classification aligns with the short-term nature of these investments, indicating their anticipated conversion into cash or utilization in the normal course of business operations. By reporting temporary investments in the current assets section, the balance sheet provides stakeholders with insights into the company's liquidity and its ability to meet short-term obligations and operational needs.