Asked by Faith DeNoyer on May 08, 2024
Verified
Short-term investments are listed on the balance sheet immediately below
A) cash.
B) inventory.
C) accounts receivable.
D) prepaid expenses.
Short-Term Investments
Investments that can easily be converted into cash, typically within a year.
Balance Sheet
This document outlines the resources, debts, and equity of the investors of a business on a certain date.
Accounts Receivable
Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.
- Gain insight into the valuation methods for short-term investments and their depiction in the balance sheet from an accounting perspective.
Verified Answer
WS
Weston ShufordMay 14, 2024
Final Answer :
A
Explanation :
Short-term investments are assets that can be easily converted into cash within a year. As such, they are listed immediately below cash on the balance sheet.
Learning Objectives
- Gain insight into the valuation methods for short-term investments and their depiction in the balance sheet from an accounting perspective.
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