A company with $500,000 cash in excess of annual operating needs invests the money in a diversified portfolio of publicly traded stocks with a "buy and hold" philosophy. In ten years, if need be, some of the stocks will be sold, and the cash proceeds will be used to retire outstanding debt. The investment should be presented Select an answer as an investment to be held-to-maturity as trading securities in the noncurrent assets section of the balance sheet as a long-term investment using the the equity method of accounting as available-for-sale securities in the noncurrent assets section of the balance sheet .

Box 1: Select the best answer