Long-Term Investments Can Include All of the Following Except

question 56

Multiple Choice

Long-term investments can include all of the following except:

• A)notes receivable maturing in nine months.
• B)equity securities of another company to be held for more than a year.
• C)ten-year debt securities of another company.
• D)land to be held beyond one year.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a market.

Bond Prices

The amount of money that buyers are willing to pay for bonds, which inversely correlates with the direction of interest rates.

Par Value

A nominal value assigned to a security or stock as stated in the corporate charter, which bears no relation to market value.

Market Return

The total return on an investment, including dividends and capital gains, as measured over a specified period in the overall market.