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Under what condition should investments be classified as long-term assets?

1 Answer

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Final answer:

Investments should be classified as long-term assets when they are expected to be held for a significant period of time, typically exceeding one year.

Step-by-step explanation:

Investments should be classified as long-term assets under the condition that they are expected to be held for a significant period of time, typically exceeding one year. Long-term assets are those that are not easily converted into cash and are intended for use or benefit of the organization over a longer period. Examples of long-term assets include real estate, machinery, and research and development projects.

User Ralph Caraveo
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