Which Statement About Long-Term Investments Is Not True

question 99

Multiple Choice

Which statement about long-term investments is not true?

• A) They will be held for more than one year.
• B) They are not currently used in the operation of the business.
• C) They include investments in stock of other companies and land held for future use.
• D) They can never include cash accounts.

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Definitions:

Raw Materials

The basic, unprocessed inputs required for the production process, such as metals, wood, and agricultural products.

Units Requisitioned

Describes the quantity of inventory items requested or ordered for production or usage in a business operation.

Production

The process of creating, manufacturing, or enhancing goods and services through the combination of labor, materials, and machinery.

Direct Labor Hour

The amount of time spent by workers directly on the manufacturing of products or services.