Long-Term Investments: Definition, Types & Examples


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question 1 of 3

Identify the correct accounting method for trading securities:

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1. Select the required accounting method when your company owns over 50% of the outstanding voting shares of another company:

2. Suppose your company owns 25% of the outstanding voting shares of another company. Determine the proper accounting for this investment.

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About This Quiz & Worksheet

Use the quiz and worksheet to see what you know about long-term investments. How these investments work and examples of them are covered on the quiz.

Quiz & Worksheet Goals

Take the quiz to check your understanding of:

  • How to account for trading securities
  • Accounting for HTM securities
  • Accounting method for AFS securities

Skills Practiced

  • Reading comprehension - ensure that you draw the most important details from the lesson on long-term investments
  • Knowledge application - use your knowledge to answer questions about different accounting methods
  • Information recall - access the knowledge you have gained about AFS and HTM securities

Additional Learning

See what other topics you can learn about by using the lesson called Long-Term Investments: Definition, Types & Examples. Thanks to this lesson, you can:

  • See what is involved in trading securities
  • Compare and contrast different types of securities
  • Identify factors that determine proper accounting for long-term investments