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Q3-4 Usually, current assets are listed in a specific order, starting with cash. What is the
objective of this order of listing?
If so, management is indicating that it expects the asset to be converted into cash during
the operating cycle or within a year, whichever is longer. (P.98)
Q3-5 Differentiate between marketable securities and long-term investments. What is the
purpose of owning each?
Marketable securities are instruments that are highly liquid and can be converted into
cash very quickly. Long term investments are different in that most are made with the
