INVESTMENT
Introduction
Investments are assets held by an enterprise for earning income by way of dividends, interest, and rentals, for capital appreciation, or for other benefits to the investing enterprise.
When one use money or monetary items for the purpose of earning return thereon is known as investment. Investing is the easy task, anybody who has money/monetary items can invest. One doesn’t have to think so much to make an investment. The main point to think wisely comes when one needs the higher return on investment with minimum risk.
If you want good earning from your investment then you have to think and make the analysis on available types of investment in the market.
It is always said that "high-risk high return, low-risk low return". So when you are in search of the place where you want the high return, then always remember the risk attached to it.
Investments are classified into two categories
• Current Investments
• Long-term Investments
Current Investments
• A current Investment is an investment that is by its nature readily realizable and is Intended to be held for not more than one year from the date on which such investment
is made
Long-Term Investments
• A long-term investment is an investment other than a current investment
• Usually carried at cost
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