Victoria Company is planning to start the construction of a new manufacturing facility in 2016, two years from now.In 2011 Victoria invested $250,000 of surplus cash by purchasing a government bond that matures in 2016.They may need to use some of this cash to finance next year's working capital needs.For accounting purposes how should Victoria Company's investment in the government bonds be treated?

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The Answer of Victoria Company is planning to start the construction of a new manufacturing facility in 2016, two years from now.In 2011 Victoria invested $250,000 of surplus cash by purchasing a government bond that matures in 2016.They may need to use some of this cash to finance next year's working capital needs.For accounting purposes how should Victoria Company's investment in the government bonds be treated?

Victoria Company Is Planning to Start the Construction of a New