Management's intent determines whether an available-for-sale security is classified as long-term or short-term.

Question

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Management's intent is a key factor in determining the classification of available-for-sale securities as either long-term or short-term. If management intends to hold the security for more than a year, it will be classified as long-term. If management intends to sell the security within a year, it will be classified as short-term.

Management's Intent Determines Whether an Available-For-Sale Security Is Classified as Long-Term