---### Understanding Long-Term Investments in Company Operations**Question:**Land used in the company’s operations is reported as a long-term investment.**Answer Choices:**- True- False**Explanation:**When evaluating how land used in a company's operations is classified in financial reporting, it's essential to understand the nature of long-term investments. Long-term investments typically refer to assets that a company holds for an extended period, intending to generate profit over time. These can include stocks, bonds, real estate properties not intended for immediate operational use, and other financial instruments.However, land that is integral to the company’s daily business activities, such as land on which the company's facilities are situated, is usually classified as "property, plant, and equipment (PPE)" rather than a long-term investment. This classification falls under fixed assets on the company's balance sheet and not as a long-term investment.---This layout provides a well-structured and educational explanation that aligns with the questions and answer choices shown in the image.

Long-term investments are those assets that are held by the business for reselling in the future. It…

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Business

Accounting

Land used in the company's operations is reported as a long-term investment. True or False True False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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