Which of the Following Is Required by Accounting Standards for the Presentation

question 58

Multiple Choice

Which of the following is required by accounting standards for the presentation and disclosure of investments in marketable securities?

• A) By classification as trading, available-for-sale or held-to maturity.
• B) For an analyst's determination of liquidity.
• C) For the company's physical possession of the security versus agent holdings.
• D) For the expected success of the organization of investment.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

CPA

Certified Public Accountant, a professional designation given to accountants who pass a licensing examination and meet other state requirements.

IRS

The Internal Revenue Service, the U.S. federal agency responsible for tax collection and enforcement of tax laws.