Under which of the following categories would bonds held as investment for more than a year appear?
A)Long-term assets
B)Current assets
C)Long-term liabilities
D)Current liabilities

Question

Quizplus · Accepted Answer

Bonds held as an investment for more than a year would be classified as a long-term asset on the balance sheet. Long-term assets are assets that are not expected to be converted into cash within the next year. Bonds are generally considered to be long-term investments because they have a maturity date of more than one year. Current assets are assets that are expected to be converted into cash within the next year, while long-term liabilities and current liabilities are both types of liabilities, not assets.

Under Which of the Following Categories Would Bonds Held as Investment