Investments in equity securities are disclosed as current assets on a company's balance sheet if
A)Management intends to sell them within a year and they have a ready market exists.
B)The fair market value cannot be determined.
C)Management intends to convert them into common stock within one year.
D)Management owns less than 50% of the outstanding stock.

Question

Quizplus · Accepted Answer

Investments in equity securities are disclosed as current assets on a company's balance sheet if management intends to sell them within a year and a ready market exists. This is because they are expected to be converted into cash in the near future.

Investments in Equity Securities Are Disclosed as Current Assets on a Company's