For the following case studies, please respond in a brief paragraph (for part 1 of each case study). Start a new paragraph to respond to part 2. In your response to part 2. In your responses, remember that you are being asked not only to locate the appropriate guidance, but also to apply it to the case facts presented.

Asset Classification

Jones Brothers purchased U.S Treasury notes 5 years ago, which are now 2 months away from maturity. Jones Brothers has asked you whether it is appropriate to reclassify these notes into the "current assets" category of its balance sheet.

Required:

1. Citing guidance from the Codification, respond to Jones Brothers.

2. Explain to Jones Brothers' management how you located the relevant guidance, including search method used, and which section you searched within the appropriate topic.