Available-for-sale (AFS)investments that are expected to be held longer than a year are reported as ________.

Question

Quizplus · Accepted Answer

AFS investments that are expected to be held longer than a year are reported as long-term assets. Current assets are assets that are expected to be converted to cash within a year or in the normal operating cycle of the business, whichever is longer. As AFS investments are not expected to be converted into cash in the short term, they cannot be classified as current assets. While it is possible for AFS investments to be classified as either current or long-term assets if the expected holding period is less than a year, the question specifies that the investments are expected to be held longer than a year, thus the best choice is C - long-term assets.

Available-For-Sale (AFS)investments That Are Expected to Be Held Longer Than