Name One of the Twelve Principles That Are Included in the Position

question 29

Short Answer

Name one of the twelve principles that are included in the position statement.

Recognize the characteristics and income generation of debt investments.

Discern the purpose and accounting treatments for purchasing debt or equity securities.

Identify accounting treatments at acquisition for different types of investments.

Distinguish between strategic and non-strategic investments, and their associated purposes.

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Definitions:

Memorandum

A written record or communication used in office or administrative support systems.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the party to be charged, to be enforceable.

Oral Agreement

A verbal commitment between parties that is not recorded in written form but may still be legally binding.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure on default.