Long-Term Investments

question 12

Multiple Choice

Long-term investments:

• A)should be reported in the liabilities section of the balance sheet.
• B)are investments in debt and equity securities that are highly liquid and that the investor intends to sell in one year or less.
• C)include debt and equity securities that the investor expects to hold longer than one year or debt or equity securities that are not readily marketable.
• D)are investments in debt securities or equity securities in which the investor holds less than 20% of the voting stock and that the investor plans to sell in the very near future.