Long-Term Investments Appear in the Property, Plant, and Equipment Section

question 143

True/False

Long-term investments appear in the property, plant, and equipment section of the balance sheet.

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Definitions:

Realized Gain

Profit resulting from the sale of an asset or investment for more than its purchase price.

Stock Dividend

A disbursement from a corporation to its shareholders, using shares as the medium instead of cash.

Stockholders' Equity

The ownership interest of shareholders in a corporation, represented by their share of the company's assets after all liabilities have been deducted.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during the bond's life, usually at the discretion of the bondholder.