Chapter 8, Problem 16SE

Other long term assets (Learning Objective 8) 5-10 min.

Classify each of the following as:

Trading security (T)

Available-for-sale security (A)

Held-to-maturity security (H)

None of the above (N)

_______ 1. A bond that management plans on owning until it is repaid; management does not believe it will need to sell the bond to generate cash before the bond’s scheduled maturity date

________ 2. Land that management is holding as an investment

________ 3. Intel stock that company management plans on selling quickly as soon as its price is 10 percent more than what the company paid at the time it purchased the stock

________ 4. Ford Motor Company stock; management does not actively manage this stock and intends to sell it only if it needs to generate cash

________ 5. A bond that management plans on owning until it is repaid; however, management believes it may have to sell the bond within the year in order to provide enough cash for operations

________ 6. inventory that management intends to sell within the year