Which is classified as a long-term investment?
A)bond issue costs
B)cash surrender value of life insurance
C)capital lease
D)three-year prepaid insurance policy

Question

Quizplus · Accepted Answer

The cash surrender value of life insurance is considered a long-term investment because it is a policy that an individual plans to hold for an extended period of time. The other options (bond issue costs, capital lease, and three-year prepaid insurance policy) are either expenses or short-term investments.

Which Is Classified as a Long-Term Investment