Which Statement About Long-Term Investments Is Not True

question 5

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 do not include long-term notes receivable.

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Definitions:

Incur a Loss

To experience a negative financial result from business operations, investments, or other economic activities.

Economic Profits

The difference between total revenue and total cost, including both explicit and implicit costs, representing the additional amount earned above the next best alternative.

Cable Subscriptions

Fees paid by consumers to access television services provided over cable infrastructure.

MC

Marginal Cost, which is the increase in total cost that arises from producing one additional unit of a good or service.