Significant interest investments are reported as ________ on the balance sheet.

Question

Quizplus · Accepted Answer

Significant interest investments are considered long-term assets because they are not intended to be converted into cash within one year. Current assets are those that are expected to be converted into cash within one year, so option A is incorrect. Likewise, current liabilities are debts that must be repaid within a year, so option B is also incorrect. While some investments may fall under the category of current assets, significant interest investments are typically considered a long-term investment. Therefore, option D is also incorrect.

Significant Interest Investments Are Reported as ________ on the Balance