If an investment is to be held only for a short time,it should be classified on the balance sheet as a ________.

Question

Quizplus · Accepted Answer

An investment that is to be held only for a short time should be classified on the balance sheet as a current asset. Current assets are those assets that are expected to be converted into cash or used up within one year or one operating cycle, whichever is longer. Since the investment is expected to be sold within a short time period, it can be easily and quickly converted into cash, and hence, should be classified as a current asset.

If an Investment Is to Be Held Only for a Short