Q1TI_6

Question

For each account listed, identify the category in which it would appear on a classified balance sheet.

6. Investments in stock of another company held long-term

Step-by-Step Solution

Verified

Answer

Investments in stock of another company held long-term are classified as Long-term investments.

1Step-by-Step-Solution

Step 1: Explanation on Long Term Investments

Long term investments are the investments which are held for more than one year. It includes notes receivable and other investments in stocks or bonds.

2Step 2: Explanation on Investments in stock of another company held long-term

Investment made in stocks of another company for longer term is the part of long term investments as it is held for more than a year.

Q1TI_5

Q1TI_7

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Q1TI_7

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Q2TI_1

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