Marketable securities held to finance future construction of additional plants should be classified on a balance sheet as:
A) Current assets.
B) Property, plant, and equipment.
C) Intangible assets.
D) Long-term investments.

Question

Quizplus · Accepted Answer

Marketable securities held for the purpose of financing future construction of additional plants are held for a long-term purpose and not for immediate use in operations. Therefore, they should be classified as long-term investments on the balance sheet.

Marketable Securities Held to Finance Future Construction of Additional Plants