Short-term investments are listed on the statement of financial position immediately above

Question

Quizplus · Accepted Answer

Short-term investments are considered liquid assets that can easily be converted into cash, hence they are listed immediately above cash on the statement of financial position. Inventory, accounts receivable, and prepaid expenses are typically considered as operating assets and are usually listed after cash and short-term investments.

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