Long-term investments include:
A)Investments in bonds and stocks that are not marketable.
B)Investments in marketable stocks that are intended to be converted into cash in the short-term.
C)Investments in marketable bonds that are intended to be converted into cash in the short-term.
D)Only investments readily convertible to cash.
E)Investments intended to be converted to cash within one year.

Question

Quizplus · Accepted Answer

Long-term investments are those that are held for an extended period of time, typically greater than one year. Investments in bonds and stocks that are not marketable are not intended to be sold in the short-term and therefore qualify as long-term investments. Marketable stocks and bonds are typically intended for short-term trading and would not be considered long-term investments. Only being readily convertible to cash or intended to be converted to cash within one year is not necessarily indicative of a long-term investment.

Long-Term Investments Include