At acquisition, non-strategic investments are recorded at purchase cost.

Non-Strategic Investments

Investments made by a company in assets or other companies that are not central to its main line of business or long-term objectives.

Purchase Cost

The total amount paid to acquire an asset, including any additional charges necessary to bring it to its intended use.

Recognize the accounting practices for various investment classes at the time of acquisition.
Recognize the criteria and rationale used for categorizing investments into either short or long-duration categories.

Verified Answer

Abdirahman AbdulleNov 15, 2024

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Learning Objectives

Recognize the accounting practices for various investment classes at the time of acquisition.
Recognize the criteria and rationale used for categorizing investments into either short or long-duration categories.