What Is a Long-Term Fund and List the Three Most

question 126

Essay

What is a long-term fund and list the three most common long-term funds that a company would report as investments on its balance sheet.

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Definitions:

Days in Inventory

A financial metric that indicates the average number of days a company takes to sell its entire inventory.

Ending Inventory

The amount of inventory available to be sold by the end of an accounting term.

Lower-of-Cost-or-Market

An accounting principle requiring that inventory be recorded at the lesser of its historical cost or current market value.

Replacement Cost

The current cost of replacing an asset with a new one of similar kind and quality at present market prices.