Question

The trading securities owned by a company are ___________.

• A. reported on the balance sheet as a current asset.
• B. reported on the balance sheet as a noncurrent asset.
• C. reported on the balance sheet as a contra-equity asset.
• D. reported on the balance sheet as a reduction of liabilities.

Answer 1

The correct option is A reported on the balance sheet as a current asset.

Trading securities are also termed as marketable securities. These are investments made by the organization for a short period of time. These securities can be sold in the market on immediate basis if the organization required funds. Therefore, these securities are reported as current assets in the balance sheet.