- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 19. Understanding Balance Sheets
- Subject 1. Components and Format of the Balance Sheet
CFA Practice Question
What should an investment in common stock be categorized as on a balance sheet?
A. Long-term investments
B. Either current assets or long-term investments
C. Neither current assets nor long-term investments
Explanation: It depends on whether management's intent is to hold this stock for the long-term or short-term.
User Contributed Comments 2
| User | Comment |
|---|---|
| harpalani | I thought its treasury stock. |
| jasonkwk | of course no, the word "investment" already give you a clue. |