Temporary investmentsa. are reported as current assetsb. include cash equivalentsc. do not include equity securitiesd. All of these choices are correct.

Question

Business

Krystal Beard

25 March, 08:23

Temporary investmentsa. are reported as current assetsb. include cash equivalentsc. do not include equity securitiesd. All of these choices are correct.

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Answers (1)

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Brenden Nash · Answer 1

D. All of the above

Explanation:

Temporary investments are investments carried out by owners of funds that wants to earn interest from their excess funds that is only available for a short term. The owners of such fund prefer to earn little interest by investing in near cash or cash equivalent investment instead of leaving his fund in an interest-free condition. Example of temporary investment is certificate of deposit and some fixed deposits instrument available for the short term.

Temporary investments are reported as current assets in the balance sheet of a business.