Long-Term Investments Include

question 53

Multiple Choice

Long-term investments include:

• A)stocks and bonds that are not liquid or readily convertible to cash.
• B)securities that the investor expects to hold longer than one year or operating cycle,whichever is longer.
• C)securities reported in the non-current asset section of the balance sheet.
• D)all of the above.

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Definitions:

Subrogation

The legal right held by insurers to pursue a third party that caused an insurance loss to the insured.

Secured

Relating to a loan or obligation that is backed by collateral, ensuring the lender has recourse in case of default by the borrower.

Obligation

A legal or moral duty to do or not to do something, often resulting from a contract or promise.

Subrogation

The process by which one party assumes the legal rights of another party to collect a debt or claim.