Which of the Following Would Be Considered a Long-Term Asset

question 101

Multiple Choice

Which of the following would be considered a long-term asset?

• A) Accounts Payable
• B) Land
• C) Office Supplies
• D) Owner, Capital

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Definitions:

Premium

An amount paid in excess of the nominal or face value, often in relation to insurance policies, bonds, or shares.

Effective Interest Rate

The actual return on an investment, taking into account the effect of compounding interest as opposed to the nominal rate.

Contract Interest Rate

The interest rate specified in a loan agreement or contract, typically fixed for the life of the loan.

Face Value

The nominal value or dollar value of a security stated by the issuer, also known as par value, especially relevant for bonds and stock certificates.