What characteristic describes long term investments?

What characteristic describes long term investments?

• A. Inventories.
• B. Intangible assets.
• C. Held longer than a year and yield interest or dividends.
• D. Liquid within a year.

Answer: (C)

Long-term investments are assets held for more than one year with the goal of earning returns, typically in the form of interest or dividends. This makes them non-current assets on the balance sheet, not something used in day-to-day operations or sold within the year. Inventories are current assets used in producing or selling goods. Intangible assets are non-physical assets like patents or goodwill. Being liquid within a year describes current assets or cash equivalents. Since the defining feature of long-term investments is their long horizon and the return they generate (interest or dividends), that option best fits.

Long-term investments are assets held for more than one year with the goal of earning returns, typically in the form of interest or dividends. This makes them non-current assets on the balance sheet, not something used in day-to-day operations or sold within the year.

Inventories are current assets used in producing or selling goods. Intangible assets are non-physical assets like patents or goodwill. Being liquid within a year describes current assets or cash equivalents. Since the defining feature of long-term investments is their long horizon and the return they generate (interest or dividends), that option best fits.