Asked by Hannah Kristen on May 11, 2024
Verified
Land acquired as a speculation is reported under Investments on the balance sheet.
Speculation
The act of trading in an asset or engaging in a financial transaction that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain.
Investments
Assets purchased with the expectation that they will generate income in the future or appreciate and be sold at a higher price.
- Identify the proper classification of assets on the balance sheet.
Verified Answer
SR
Sofia RivadeneiraMay 18, 2024
Final Answer :
True
Explanation :
Land acquired as a speculation is considered an investment and is reported under the Investments category on the balance sheet.
Learning Objectives
- Identify the proper classification of assets on the balance sheet.