Asked by Kierra Lewis on Jul 12, 2024
Verified
The account Stock Investments is
A) a subsidiary ledger account.
B) a long-term liability account.
C) a general ledger control account.
D) another name for Debt Investments.
Stock Investments
Purchases of shares in other companies, held as assets, which represent partial ownership and may yield dividends and capital gains.
Subsidiary Ledger
A detailed ledger that contains all the transaction details of a specific account, which then summarizes into the general ledger.
Long-term Liability
Financial obligations that are due after a period of more than one year, such as bonds payable or long-term loans.
- Understand the classification and treatment of long-term stock investments in accounting.
Verified Answer
Learning Objectives
- Understand the classification and treatment of long-term stock investments in accounting.
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