Management's statement that a marketable security is a long-term investment may be the only evidence available to support classifying the investment as a non-current asset.

Question

Quizplus · Accepted Answer

Management's statement regarding a marketable security being a long-term investment can indicate that the company does not intend to sell the security in the short term, which can support its classification as a non-current asset. However, other factors such as the security's maturity date and the company's past practices also need to be considered in determining its classification.

Management's Statement That a Marketable Security Is a Long-Term Investment