Question

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.

A. Current assets

B. Long-term investments

C. Plant assets

D. Intangible assets

E. Current liabilities

F. Long-term liabilities

G. Equity

1. Long-term investment in stock

Short answer

The correct answer is B, Long term investments.

Step-by-step solution

Definition of Stock

Stock can be defined as the proportion of investment in any company that may or may not provide ownership rights, depending on the nature of the stock.

Reason of choice

Long-term stock investment is classified as a long-term investment as it provides long-term benefits to the investor, so it should be disclosed as an asset under long-term investment.