Q923
In financial markets, period of maturity more than five years of financial instruments is classified as
A.
intermediate term
B.
capital term
C.
short-term
D.
long-term
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
In financial markets, period of maturity more than five years of financial instruments is classified as long-term. Generally, a time frame for investing in which an asset is held for at least seven to ten years. The measure of a "long term" time frame can vary depending on the asset held or the investment objective. In business accounting measures, long term can be a period of time that exceeds 12 months.