Ask Question
2 August, 02:30

A company purchased a tract of land on which it expects to build a production plant in approximately five years. During the five years before construction, the land will be idle. In what classification should the land be reported?

+1
Answers (1)
  1. 2 August, 05:41
    0
    A long-term investment.

    Explanation:

    The land should be classified as a long-term investment.

    This is an asset owned by the company, that it intends to keep for more than a year. This asset is usually recorded on the asset side of a company's balance sheet.

    It is the opposite of short-term investment which is sold within one year.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company purchased a tract of land on which it expects to build a production plant in approximately five years. During the five years ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers