Yes, marketable securities such as commonstockorT billsarecurrent assetsforaccountingpurposes.
Current assets are anyassetsthat can be converted intocashwithin a period of one year. This counts products that are sold for cash as well as resources that are consumed, used, or exhausted through regularbusinessoperations that are expected to provide a cash value return within a single year.
Short-terminvestmentsand marketable securities are investments in securities that will provide a cash return within a single year. These types of securities can be bought and sold in public stock and bonds markets.
In the case ofbonds, the bond must have a maturity of less than a year in order to be considered a current asset; in the case of marketableequity, it is a current asset if it will be sold or traded within a year.
Are Marketable Securities Current Assets FAQs
Are marketable securities current assets?
Yes, marketable securities such as common stock or T bills are current assets for accounting purposes.
What is a current asset?
A current asset is an asset that will provide an economic benefit for or within one year.
Where can marketable securities be purchased?
Marketable securities can be bought and sold in public stock and bonds markets.
Can a bond and marketable equity be a current asset?
In the case of bonds, the bond must have a maturity of less than a year in order to be considered a current asset; in the case of marketable equity, it is a current asset if it will be sold or traded within a year.
