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.

Distinguish between the various depreciation methods and their appropriate applications.

Understand the role of salvage value and useful life in calculating depreciation.

Analyze the effect of depreciation on financial statements and tax obligations.

Evaluate the choice of depreciation method on the financial health and reporting of a business.

---

Definitions:

Fact

A statement that can be proven to be true or false, based on evidence or reality.

Figure

In computing contexts, it may refer to a graphical or illustrative representation of data within a document or presentation.

Idea

A thought or suggestion as to a possible course of action or the conception of a possible novelty.

KB

Stands for Kilobyte, a unit of digital information storage equal to 1,024 bytes.