Short-term investments are listed on the statement of financial position immediately below
A)cash.
B)inventory.
C)accounts receivable.
D)prepaid expenses.

Question

Quizplus · Accepted Answer

Short-term investments are typically highly liquid and easily convertible into cash, so they are listed immediately below cash on the statement of financial position. Additionally, short-term investments are not considered to be operating assets like inventory, accounts receivable, or prepaid expenses, so they would not be listed below those items.

Short-Term Investments Are Listed on the Statement of Financial Position