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BusinessBusiness
17 February, 21:31

Temporary investments

(A) do not include equity securities

(B) are reported as current assets

(C) include cash equivalents

(D) All of these choices are correct.

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Answers (1)
  1. 17 February, 22:40
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    (B) are reported as current assets

    Explanation:

    The temporary investment is the investment which is temporary in nature or we can say short term investment that includes cash and cash equivalents i. e bank account, marketable securities

    This temporary investment is shown on the asset side of the balance sheet as a current asset which reflects the liquidity of the business organization that means these items would be converted in less than one year.
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