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    Asset Side of the Balance Sheet

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    Where on the asset side of the balance sheet are trading securities, available-for-sale, and held-to-maturity securities reported? Explain.

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    Short term investments include investments in debt or equity. Short term investments are reported in current asset section of Balance sheet.
    Investments are classified as short term investments if they satisfy following two tests.
    1 they are readily marketable
    2 they are intended to be converted in to cash in the near future.

    Trading Securities: Short term investments are further classified as Trading securities or Available for sale securities. Trading securities include ...

    Solution Summary

    This solution provides an explanation of the asset side of the balance sheet.