Securities Bought and Held Primarily for Sale in the near Term

question 47

Multiple Choice

Securities bought and held primarily for sale in the near term to generate income on short-term price differences are

• A) trading securities.
• B) non-trading securities.
• C) never-sell securities.
• D) held-for-collection securities.

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Definitions:

Internal Control System

A set of procedures and mechanisms implemented by a business to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Bank Statement

A bank statement is a summary of financial transactions that have occurred over a given period in a bank account, provided by the bank to the account holder.

Account Balance

The amount of money present in an account, representing the net of credits and debits at a particular point in time.

Liability

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of assets, provision of services, or other economic benefits.