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

question 61

Multiple Choice

Available-for-sale (AFS) investments that are expected 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:

Service Business

An enterprise offering non-physical goods or services to its clientele.

Merchandising Income Statement

A financial statement detailing the gross profit, expenses, and net profit or loss of a retail or wholesale business.

Administrative Expenses

Overheads and general expenses related to the day-to-day management and operation of a business, excluding production and direct costs.

Operating Income

The profit realized from a business's core operations, excluding revenue from investments and costs such as interest expenses and taxes.