INTRO TO FIN ACCT (LL W/ ACCESS-1 SMSTR
INTRO TO FIN ACCT (LL W/ ACCESS-1 SMSTR
10th Edition
ISBN: 9781264038947
Author: Libby
Publisher: MCG
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Chapter A, Problem 1Q
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Explain the difference between short-term and long-term investment.

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Explanation of Solution

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Difference between short-term and long-term investments:

Short-Term InvestmentsLong-term Investments
The investments which are bought to sell or trade within a short time period of less than 90 days, are referred to as short-term investments.The investments which are bought to hold for longer time period of more than 6 months are referred to as long-term investments.
These investments are reported as current assets on the balance sheet.These investments are reported as non-current assets on the balance sheet.

Table (1)

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INTRO TO FIN ACCT (LL W/ ACCESS-1 SMSTR

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