Asked by Hannah Kristen on May 11, 2024

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Land acquired as a speculation is reported under Investments on the balance sheet.

Speculation

The act of trading in an asset or engaging in a financial transaction that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain.

Investments

Assets purchased with the expectation that they will generate income in the future or appreciate and be sold at a higher price.

  • Identify the proper classification of assets on the balance sheet.
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SR
Sofia RivadeneiraMay 18, 2024
Final Answer :
True
Explanation :
Land acquired as a speculation is considered an investment and is reported under the Investments category on the balance sheet.