Long-Term Investments

question 42

Multiple Choice

Long-term investments:

• A)Are current assets.
• B)Can include funds designated for a special purpose,or investments in land not used in the company's operations.
• C)Must be readily convertible to cash.
• D)Are expected to be converted into cash within one year.
• E)Include only equity securities.

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Definitions:

Public Policy

Comprises government actions and procedures intended to solve societal issues and promote the general welfare.

Privity of Contract

A legal doctrine that stipulates that only parties in a contract have the right to sue or be sued on the contract terms.

Right to Privacy

The right of individuals to keep their personal matters and relationships confidential and free from public view or intrusion.

Bank's Sale

A sale conducted by a bank, usually involving assets owned by the bank or foreclosed properties.