Short-term investments: Investments which are made for a period of less than 12 months are called short-term investments. Current assets: Current assets are assets which are either cash or realizable in cash in short-term period. Current assets include cash, cash equivalents, short-term investments, accounts receivables. Two conditions under which an investment should be classified as current assets.

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Chapter 15, Problem 1DQ

To determine

Introduction:

Short-term investments:
Investments which are made for a period of less than 12 months are called short-term investments.

Current assets:
Current assets are assets which are either cash or realizable in cash in short-term period. Current assets include cash, cash equivalents, short-term investments, accounts receivables.

Two conditions under which an investment should be classified as current assets.

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