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 long term investment 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

Last modified March 23rd, 2016 by Team

You May Also Like