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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.
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