Question

Does Facebook and Twitter invest in any financial securities? How do they classify the different types of investments?

Answer 1

When we see the balance sheet of Facebook and Twiter then we will find that there are investment given under current asset and under long-term assets also. This shows that these two companies have made some investment in outside financial securities too. But after studying carefully annual reports of Facebook and Twitter we found that these two companies have made only short-term investment not made long-term investment. Hence Facebook and Twitter both have made investment in financial securities that are classified as short-term investment under current asset section in the balance sheet.