Question

Which of the following statements are true oflong-term investments?

a. They can include bonds and stocks not intended to be sold in the near future.
b. They can be considered cash equivalents.
c. They can include assets not used in operations, such as investments in land.
d. They generally include investments that will mature in 3 to 12 months.
e. They are reported with noncurrent assets on the balance sheet.
f. They are always easily sold and therefore qualify as being marketable.

Answer 1

a. They can include bonds and stocks not intended to be sold in the near future.

c. They can include assets not used in operations, such as investments in land.

e. They are reported with noncurrent assets on the balance sheet.

Step-by-step explanation:

Long term investment or assets are those that are typically held in a company's balance sheet for many years. They can include assets such as land, equipment like machinery, buildings and vehicles.

They also include sticks and bonds that won't be used in the short term.

So long term investment are not cash equivalents because cash can be used in the short term.

Also it cannot be used within 3 - 12 months.

They are not easily sold as they sold so they are not considered marketable asset in the short run.

Long term investment is considered to be a non current asset as they last longer than a year on the balance sheet.