Equity securities that give an investor significant influence over an investee are always considered short-term investments.

Question

Quizplus · Accepted Answer

There is no direct relationship between equity securities that give an investor significant influence over an investee and their classification as short-term investments. The classification of such securities as short-term or long-term depends on the investor's intention and ability to hold them for a significant period.

Equity Securities That Give an Investor Significant Influence Over an Investee