Which is classified as a long-term investment?

A) bond issue costs
B) cash surrender value of life insurance
C) capital lease
D) three-year prepaid insurance policy

Long-Term Investment

Investments in securities or assets intended to be held for several years or more to generate long-term returns.

Cash Surrender Value

Cash surrender value is the amount of cash that a life insurance policyholder can receive upon the cancellation of their policy before its maturity or the insured event.

Capital Lease

A lease agreement considered to have the economic characteristics of asset ownership, thus it is recorded as an asset and liability on the balance sheet.