Which Statement About Long-Term Investments Is Not True

question 179

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:

Bankers' Acceptance

A short-term financial instrument issued by a company that is guaranteed by a commercial bank.

Treasury Note

A type of U.S. government debt security with a fixed interest rate and maturity between two to ten years.

Eurodollar

U.S. dollar-denominated deposits at foreign banks or foreign branches of American banks, used widely in international lending and financing.

LIBOR

The London Interbank Offered Rate, a benchmark interest rate at which major global banks lend to one another.