Investments in debt securities,such as bonds,may be classified as either current or long-term assets.

Question

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Debt securities can be classified as either current or long-term assets depending on the intent of the investor. If the investor intends to hold the security for a short period of time (usually less than a year), it would be classified as a current asset. If the investor intends to hold the security for a period longer than a year, it would be classified as a long-term asset.

Investments in Debt Securities,such as Bonds,may Be Classified as Either