Quick practice
Question 1 of 5
One of a firm's assets is 270-day commercial paper that the firm intends to hold to maturity. One of its liabilities is a short position in a common stock, which the firm holds for trading purposes. How should this asset and this liability be classified on the firm's balance sheet?
A
One should be classified as current and one should be classified as non-current
B
Both should be classified as non-current.
C
Both should be classified as current.
Get unlimited practice with CFA Level 1 subscription
Boost your performance with adaptive practice tests
Practice every concept in the syllabus
Compare your speed and accuracy with your peers
Download the app and practice on the go