HSC Finance, Banking, and Bima 1st Paper 6th Chapter Note Long-term Investment. A long-term investment is an account on the asset side of a company’s balance sheet that represents the company’s investments, including stocks, bonds, real estate, and cash, that it intends to hold for more than a year. The long-term investment account differs largely from the short-term investment account in that the short-term investments will most likely be sold, whereas the long-term investments may never be sold.
HSC Finance, Banking, and Bima 1st Paper 6th Chapter Note Long-term Investment
Definition: Long-term investments are non-current assets that are not used in operating activities to generate revenues. In other words, LT investments are assets that are held for more than one year or accounting period and are used to create other income outside of the normal operations of the company.
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