Long-term investments:
A) Are current assets.
B) Include funds earmarked for a special purpose such as bond sinking funds.
C) Must be readily convertible to cash.
D) Are expected to be converted into cash within one year.
E) Include only equity securities.

Question

Quizplus · Accepted Answer

Long-term investments typically refer to assets that are not expected to be converted into cash within one year. These can include funds set aside for a specific purpose, such as bond sinking funds, and are not necessarily readily convertible to cash. Long-term investments may also include equity securities, but this is not the only type of investment that qualifies as a long-term investment.

Long-Term Investments