Strickland Corporation Has Invested in 10% of the Outstanding Stock

question 80

Multiple Choice

Strickland Corporation has invested in 10% of the outstanding stock of Nez Corporation. Strickland intends to actively manage this investment for profit. This investment is classified as:

• A) a held-to-maturity security.
• B) a significant influence security.
• C) a trading security.
• D) a controlling influence security.
• E) an available-for-sale security.

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Definitions:

Significant Variances

Large or important differences between planned and actual figures in a budget or financial statement, often requiring further investigation.

Customer Perspective

An aspect of business strategy that focuses on understanding and meeting the current and future needs of customers.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Overhead Volume Variance

A measure of the difference between the estimated and actual overhead costs, due to changes in production volume.