Question

If equity investments are held as current assets, how can they be measured?

If equity investments are held as current assets, how can they be measured?

Homework Answers

Answer #1

They treated as marketable secuirities,which can be converted into cash within a short period...

Excluding the long term assets like Property and equipment, Intangible assets, Non-marketable investments, goodwill, deferred income taxes and other non-current assets will yield us the current assets figure.

Current Assets is calculated using the formula given below

Current Assets = Cash + Cash Equivalents + Inventory + Account Receivables + Marketable Securities + Prepaid Expenses + Other Liquid Assets

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