Question

Long-term investments include:_____.A. Investments in marketable bonds that are intended to be converted into cash in the short-term. B. Investments that are not readily convertible to cash or not intended to be converted to cash in the short term. C. Investments in marketable stocks that are intended to be converted into cash in the short-term. D. Only investments readily convertible to cash. Investments intended to be converted to cash within one year.

Answer 1

Answer:

B. Investments that are not readily convertible to cash or not intended to be converted to cash in the short term

Explanation:

Long term investments are assets that a firm intends to hold onto for a period exceeding one year. They include projects, and investment vehicles are expected to generate revenue for several financial periods. Long term investments are characterized by a higher degree of risk in pursuit of greater rewards.

Examples of long term investments include bonds, stocks, plants and machinery, and real estate. Long term investments such as real estate and machinery are not easily disposed. Some are never disposed.