All of the Following Are True for Available-For-Sale Equity Securities

question 173

Multiple Choice

All of the following are true for Available-for-sale equity securities except:

• A)Are recorded at cost when acquired.
• B)May earn interest that is reported in that year's income statement.
• C)May be classified as either short-term or long-term securities.
• D)Are reported at market value on the balance sheet.
• E)Are actively managed like Trading Securities.

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Definitions:

Lock and Key Model

A model describing how enzymes and substrates fit together with specificity, similar to a lock and its key.

Induced-Fit Model

A model describing how enzyme activity involves the binding site adapting to fit the shape of their substrates.

Allosteric Model

A model describing how the binding of a molecule to a protein at one site can affect the binding properties of the protein at a different site.

ATP

Adenosine triphosphate, a molecule that carries energy within cells, used for metabolic processes.