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Which of the Following Transactions Decreases the Profitability of a Company

question 47

Multiple Choice

Which of the following transactions decreases the profitability of a company?


Definitions:

Marketable Securities

Marketable securities are liquid financial instruments that can be quickly converted into cash at their current market prices.

Trading Securities

Financial assets that a firm holds for the purpose of selling them in the short term to profit from price changes.

Amortized Cost

The amount at which a financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization.

Unconsolidated Investee

A company in which the parent company has a significant investment but not enough to exert full control or consolidate the financial statements.

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