Long-term investments are reported in the:
A) Current asset section of the balance sheet.
B) Intangible asset section of the balance sheet.
C) Non-current section of the balance sheet called long-term investments.
D) Plant assets section of the balance sheet.
E) Equity section of the balance sheet.

Question

Quizplus · Accepted Answer

Long-term investments are classified as non-current assets in the balance sheet and are reported in the non-current section specifically labeled as long-term investments. Therefore, option C is the best choice. Current assets are assets that are expected to be converted into cash within one year or the operating cycle, and intangible assets are assets that lack physical substance, such as patents and trademarks. Plant assets are tangible long-lived assets, such as buildings and equipment, that are used in the operations of the business. The equity section of the balance sheet reports the owner's claims to the assets of the business, such as common stock and retained earnings.

Long-Term Investments Are Reported in The