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One of a firm 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 balance sheet?
& H7 ~5 T8 z2 |8 j0 [( q; vA. Both should be classified as current.
, o3 F7 t" N# \# q0 E9 \8 r2 r4 w; O4 KB. Both should be classified as non-current.1 I, k: G- |- H' I( h* L
C. One should be classified as current and one should be classified as non-current.2 }* D2 R8 z9 t/ N% J5 j5 t
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