Long Term Investment

What is a Long Term Investment?

A long term investment is part of the balance sheet, and is an investment which a business intends to hold for more than one year from the balance sheet date. A long term investment can include such things as stocks, shares, bonds, cash and property.

There is no difference in the nature of the investment between long term and a short term investments, it is simply the intention of the business which differs. For example, a business can hold a property with the intention of selling it as soon as possible providing it gets the right price, this would be regarded as a short term investment. However, if it held the same property with no intention of selling, it would be regarded as a long term investment.

For further information see the Wikipedia definition.

Learn a new bookkeeping term

Random bookkeeping terms for you to discover.

Link to this page

Click in the box and paste this long term investment definition link to your site.

Return to the Dictionary

Long Term Investment March 23rd, 2016Team

You May Also Like


Related pages


depreciation declining balance methodtrial balance for dummiesstable monetary unit assumptioncash disbursement bookaverage debtor days calculationexcel general ledger templateadvantages of petty cashformula for present value of annuityallowance for doubtful accounts is what type of accountcredit sales formulaperpetual and periodic inventory systemis notes receivable a current assetprepaid freight termsgrowth perpetuity formulatrade payable days formulasample ledger for small businesscash reconciliation test citcofuture value annuity due calculatorcalculate pmtcalculate accumulated depreciationcash discount journal entryperiodic inventory system average cost methodapr to ear formulatable of annuity factorsmaterial quantity variance formulafv of an annuitywhat are outstanding chequescash floatformula for depreciable costexcel gross margin formulagearing ratio exampleexamples of suspenseexcel fv functioncommon size income statement formulaunpresented checksimple bookkeeping templatedefine amortizationnormal balance debit or creditaccelerated depreciation methodscontrollable expenses examplespmt mortgagewhat does gaap stand forperpetuity modelaccount payables daysnotes receivable adalahunits of output calculatorwhat is implicit interest ratecalculate the variable cost per unitcontribution margin format income statementtrial balance calculatorcalculate retained earnings balance sheetdefinition of retained profitsnet profit to sales ratiofob freight termcalculate total contribution marginjournal entry for accrued wagesvolume variance analysisjournal entry for receiving payment on accountproduction overheadlabour cost per unit formulaexcel formula for irrdefine utilities expenseytm in excelquick asset ratio formuladiscuss the accounting cyclehow to calculate production capacity in excelbank reconciliation statement explanationcosting sheet templatea note receivable or promissory noteintangible assets balance sheet exampleoperating lease journal entriesdeferred tax in cash flow statementexamples of unearned incomemoney receipt format doc