When looking at the current assets section of a company's balance sheet:
A) cash equivalents are considered short-term investments.
B) short-term investments include stocks and bonds of other companies that the company intends to sell within the next year.
C) merchandise inventory is considered a prepaid expense.
D) accounts payable are amounts the company expects to collect from customers within the next year.

Question

Quizplus · Accepted Answer

Short-term investments include stocks and bonds of other companies that the company intends to sell within the next year, making them part of current assets.

When Looking at the Current Assets Section of a Company's