Available-For-Sale (AFS)investments That Are Planned to Be Held Longer Than

question 92

Multiple Choice

Available-for-sale (AFS) investments that are planned to be held longer than a year are reported as:

• A)equity.
• B)current assets.
• C)long-term assets.
• D)either current assets or long-term assets.

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Definitions:

Risks and Benefits

The potential negative outcomes (risks) and positive outcomes (benefits) associated with a particular action or decision.

Lessor

The owner of a property who leases it to another party, known as the lessee.

Sales-type Lease

A lease agreement where the lessor transfers ownership of the asset to the lessee by the end of the lease term, often used in the financing of equipment.

Direct Financing Lease

A type of lease where the lessor purchases the leased asset specifically for leasing to the lessee, effectively providing finance to the lessee for the asset's purchase.