Long-term investments cannot include:
A)Held-to-maturity debt securities.
B)Securities with maturity dates within three months.
C)Equity securities giving an investor insignificant influence over an investee.
D)Equity securities giving an investor significant influence over an investee.
E)Available-for-sale debt securities.

Question

Quizplus · Accepted Answer

Long-term investments are assets that a company holds for more than one year with the intention of generating current and future income as well as capital appreciation. Securities with maturity dates within three months are not considered long-term investments because their holding period is less than a year.

Long-Term Investments Cannot Include