Which of the Following Is True of Available-For-Sale (AFS)investments

question 101

Multiple Choice

Which of the following is true of available-for-sale (AFS) investments?

• A)They are always reported as current assets in the balance sheet.
• B)They are always reported as long-term assets in the balance sheet.
• C)They are reported as current assets on the balance sheet only if the business expects to sell them within the first two years.
• D)They are reported as long-term assets on the balance sheet only if they are planned to be held for longer than a year.

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Definitions:

Enforceable

Capable of being imposed or upheld by law.

Contracts

Contracts are legally binding agreements between two or more parties that outline terms and conditions and are enforceable by law.

Variance

A statistical measure that represents the degree of spread or dispersion of a set of data points, or the difference between expected and actual performance.

Zoning Commissions

Governmental bodies that oversee the implementation of zoning regulations, determining how land within their jurisdiction can be used and developed.