Trading securities, by definition, are properly classified in the balance sheet as:

Question

Quizplus · Accepted Answer

Trading securities are securities that are bought and held with the intention of selling them in the near term to generate profits from short-term price fluctuations. As a result, they are considered part of a company's current assets, which are assets that are expected to be converted into cash within one year or less. Therefore, the correct classification for trading securities on the balance sheet is current assets.

Trading Securities, by Definition, Are Properly Classified in the Balance