What are Long terms Investment?
Familiar with the term Balance sheet in the accounting scenario of a company? Well a long-term investment is basically an account represented on the asset side of the company’s balance sheet that represents the company’s detailed investments which further includes bonds, stocks, real estate properties in the name of the company and even liquid cash which the company carries or holds on with the intention of retaining it for more than a year. The major difference a short-term Investment and a Long Term Investment account have is the likeability of the sale of the investments. In long-term, the investment may be kept as it is and may never be sold while short-term investment is more likely to be sold off.