Investments held by a corporation are always classified as current assets.

Question

Quizplus · Accepted Answer

Investments held by a corporation can be classified as either current assets or long-term investments, depending on their expected holding period. If the investment is expected to be sold or converted to cash within one year, it is classified as a current asset. If the investment is expected to be held for more than one year, it is classified as a long-term investment.

Investments Held by a Corporation Are Always Classified as Current