Knowee
Questions
Features
Study Tools

Where are Short-term Investments found on the Balance Sheet? 1 pointCurrent LiabilitiesCurrent AssetsNoncurrent AssetsNoncurrent Liabilities

Question

Where are Short-term Investments found on the Balance Sheet?

  1. Current Liabilities
  2. Current Assets
  3. Noncurrent Assets
  4. Noncurrent Liabilities
🧐 Not the exact question you are looking for?Go ask a question

Solution

Answer Breakdown

Short-term investments are often classified on the balance sheet based on their liquidity and the time frame in which they are expected to be converted to cash.

  1. Current Assets: Short-term investments are typically classified as current assets. This is because they are intended to be converted to cash or used up within one year, making them readily available for the company’s operational needs.

  2. Other Classifications:

    • Current Liabilities: These are obligations the company needs to settle within a year and would not include investments.
    • Noncurrent Assets: These represent long-term investments or property, plant, and equipment that are not intended for conversion to cash within a year.
    • Noncurrent Liabilities: These are long-term financial obligations that are not due within the next year, which again would not include any form of investment.

Final Answer

Short-term investments are found under Current Assets on the balance sheet.

This problem has been solved

Similar Questions

The Balance Sheet provides information about all of the following, except __________.1 pointShareholders’ equityLiabilitiesAssetsRevenues

Current liabilities are recorded in the balance sheet onChoose one optionLiability sideAssets sideIncome sideExpenditures side

Liabilities are classified on the balance sheet as current or

Name the major heading of the assets side of a Company’s Balance Sheet organisedand presented

Which item would not appear on a Balance Sheet?1 pointRetained EarningsAccounts Receivable Prepaid expenses Interest Payable Gross Profit

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.