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:

Yield to Maturity

The total return anticipated on a bond if it is held until the end of its lifetime.

Market Interest Rate

The prevailing rate at which borrowers can obtain loans and lenders can offer funds in the financial market.

Market Interest Rates

The rates of interest charged by lenders on loans or paid on deposits, which fluctuate based on demand, supply, and the overall economic conditions.

Equity Investment

Money that is invested in a company by purchasing shares of that company, typically with the expectation of income from dividends and capital gains as the stock appreciates.