Even if a company holds part of its portfolio of short-term investments for more than 1 year,that portion of the portfolio will not be reclassified as a long-term investment.

Question

Quizplus · Accepted Answer

The classification of short-term and long-term investments is based on the intent of the company at the time of purchase, not the length of time held. Therefore, holding a short-term investment for more than 1 year does not reclassify it as a long-term investment.

Even If a Company Holds Part of Its Portfolio of Short-Term