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As they can be converted into cash within a short period, investment in securities is considered as current assets.

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Q: Why are investments usually regarded as current assets?
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Related questions

Are investments current assets or other assets?

If investments are for short term then these are current assets but if these are for long term then non-current assets.


Are investments current assets?

If investments made for short term securities then it is current assets other wise non-current assets.


In a classified balance sheet assets are usually classified as?

current assets; long-term investments; property, plant, and equipment; and intangible assets.


When should investments be classified as current assets?

When company make investments for short term that is less then one year time then these investments called current assets but while investments are for long run then those called long term investments.


What factors effect the size of a company's investments in current assets?

The state of the current economy and how much the company owes in liabilities are factors that contribute to the size of the investments in the current assets. Additionally, the company's risk factors affects their investments.


Is investment considered as current asset?

No investments in other business are normally for long term basis. If investments are for long term then long term assets otherwise current assets.


What is meant by the term current assets?

Current assets are an individuals or a companies current valuable. These valuables, also known as assets, can be cash, cash equivalent things and short-term investments.


Are intangible assets included in current assets?

Intangible Assets are not included in current assets. They are usually listed under Other Assets.


Are Short-term receivables reported in the current assets section before temporary investments?

false


What is the correct order for listing a company's current assets?

The current assets are usually listed in the order in which they are expected to be converted into cash: 1. Cash and cash equivalents 2. Short-term investments 3. Accounts and noted receivable 4. Inventories 5. Prepaid expenses etc.


Is notes receivable current assets?

Yes notes receivable is a current assets, if it is converts into cash within one year If notes receivable is a long-term then place notes receivable with all the other non-current assets like investments, property, etc...


What are the several categories on non current assets and the method of accounting for each categories?

Non-current assets are those that a company intends to keep longer than 12 months. These include investments and fixed assets. Investments include items such as trading securities, avaialable-for-sale securities, and held-to-maturity securities. Fixed assets includes items such as buidlings, land, and equipment