Which Is Classified as a Long-Term Investment

question 48

Multiple Choice

Which is classified as a long-term investment?

• A) bond premium
• B) cash surrender value of life insurance
• C) operating lease
• D) three-year prepaid rental

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Definitions:

Ownership Claims

Rights or interests that owners have in an asset or entity, reflecting their stake or ownership percentage.

Assets

Resources owned or controlled by a business, expected to produce future economic benefits.

Owner's Equity Statement

A financial statement showing the changes in the equity of a business entity over a period of time.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.