Balance sheet question: If a C-corporation has a brokerage account (such as Fidelity and IB) and have some cash deposited within the brokerage account, would I simply report that amount as "cash" under the balance sheet?

[oboero2]

If a C-corporation has a brokerage account (such as Fidelity and IB) and have some cash deposited within the brokerage account, would I simply report that amount as "cash" under the balance sheet? If it also bought other company's stocks through the brokerage account, where would that be categorized under the balance sheet? Thanks

[DavidD66]

Yes, the cash in the brokerage account would be included with other cash on the balance sheet.   Investments in stock could be either long-term or short-term assets.  If the intent is to hold the stock long-term they would be long-term assets.  If the intent is to hold less than a year they would be short-term assets listed just under cash and cash equivalents. 

[oboero2]

Thanks for the reply! So the category options for balance sheet IRS gives us are listed below. Where would the "long-term assets" and "short-term assets listed just under cash"  fall into?

1 Cash
2a Trade notes and accounts receivable
b Less allowance for bad debts
3 Inventories
4 U.S. government obligations
5 Tax-exempt securities (see instructions)
6 Other current assets (attach statement)
7 Loans to shareholder
8 Mortgage and real estate loans
9 Other investments (attach statement)
10a Buildings and other depreciable assets
b Less accumulated depreciation
11a Depletable assets
b Less accumulated depletion
12 Land (net of any amortization)
13a Intangible assets (amortizable only)
b Less accumulated amortization
14 Other assets (attach statement)

[DaveF1006]

It depends. Given the choices, I would classify these as 'other current assets" for the short term stocks  and "other investments" for the long-term investments.