Under what condition would a firm report marketable securities as a long-term asset?

Firm Reporting Marketable Securities as Long-Term Assets

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Under what condition would a firm report marketable securities as a long-term asset?

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B

A firm may maintain funds invested in marketable securities that are earmarked for plant expansion, sinking fund payments, or other long-term uses. In these situations many firms would report this portion of its cash, or cash equivalents as long-term because these invested funds are not available in the daily operation of the business.

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