Question

Temporary investments

(A) do not include equity securities
(B) are reported as current assets
(C) include cash equivalents
(D) All of these choices are correct.

Answer 1

(B) are reported as current assets

Step-by-step explanation:

The temporary investment is the investment which is temporary in nature or we can say short term investment that includes cash and cash equivalents i.e bank account, marketable securities

This temporary investment is shown on the asset side of the balance sheet as a current asset which reflects the liquidity of the business organization that means these items would be converted in less than one year.