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What defines a long-term investment? (Check all that apply.)
☐ Notes receivable and stock and bond investments are assets that are expected to be
held for more than one year.
Long-term investments are investments in stocks and bonds when they are expected to
be held for more than one year or the operating cycle.
Long-term investments are used to produce or sell products and services.
Long-term investments are long-term resources that usually lack physical form.



Answer :

GinnyAnswer

Final answer:

Long-term investments are assets like stocks and bonds held for over a year, important for firms' capital-raising, reported in financial statements.


Explanation:

Long-term investments refer to assets like stocks and bonds held for over a year, aiming for future gains. These investments are crucial for firms to raise capital for long-lasting projects, such as building a plant or starting R&D. They are reported as 'other' long-term assets in financial statements, including endowment investments and illiquid holdings like commercial real estate.


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