Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 5 - Balance Sheet and Statement of Cash Flows - Questions - Page 279: 11

Answer

Available for sale securities should only be reported as current assets if they are expected to be converted into cash by the management within one accounting period or year (whichever is longer). If they are held without expectations, they should be reported as long-term investments.

Work Step by Step

If they are held without expectations, they should be reported as long-term investments.
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