The decision of how to classify a temporary investment is based on the:
A)dollar amount involved.
B)type of investment involved.
C)number of shares or units purchased
D)length of time management intends to hold the investment.

Question

Quizplus · Accepted Answer

The decision of how to classify a temporary investment is based on the length of time management intends to hold the investment. This determines whether the investment should be classified as a short-term or long-term investment. The other factors listed (dollar amount, type of investment, and number of shares/units) are not the primary factors in determining the classification of a temporary investment.

The Decision of How to Classify a Temporary Investment Is