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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Financial Statement
Question 1
Short term investment is shown in which assets in SOFP’s current asset or non-current?
Question 2
“Cash and bank balances” are shown in SOFP so they include all cash equivalents like petty cash and bonds?
1. If they are short-term then they are current assets.
2 Cash and bank balances are petty cash and balances at the bank.
Any short term investments are shown separately as current assets (and bonds are very unlikely to be short-term).
The term cash equivalents is relevant for Statements of Cash Flows and cash + bank balances + short term investments. In calculation questions for Paper FA it will just be cash and bank balances.
Thank you tutor
You are welcome.