What type of assets are long-term investments not easily convertible to cash within one year?

Long-term investments are classified as non-current assets because they are intended to be held for more than one year and are not easily convertible to cash within that timeframe. Non-current assets include property, plant, equipment, and other investments that a business intends to hold for the long haul to generate revenue or appreciate in value over time.

In contrast, current assets are those that can be converted into cash within a year, such as cash equivalents, accounts receivable, and inventories. Liquid assets, while they refer to cash or assets that can easily and quickly be converted into cash, specifically address the ease of liquidity rather than the timeframe of holding. Tangible assets, on the other hand, pertain to physical assets that can be touched, such as machinery and buildings, but do not necessarily reflect the time horizon of being held as investments. Therefore, long-term investments fall distinctly under the category of non-current assets.