If a Stock Is Bought on Margin

question 64

Multiple Choice

If a stock is bought on margin,

• A)part of the cost of the investment is borrowed
• B)the commissions on the investment are increased
• C)the cost of the investment is reduced
• D)the interest on the borrowed funds is set by the Securities and Exchange Commission (SEC)

Know how not-for-profit organizations should report capital assets and related amortization.

Understand accounting for investments and relationships between NFP organizations.

Identify how to account for various types of revenue in NFP organizations.

Comprehend the accounting treatment for restricted funds and endowments.

---

Definitions:

Personal Media

Media content centered around individual interests and preferences, often created or curated by the individual themselves.

Surface Mail

A method of delivering physical postal packages or correspondence that travels by land and sea, typically slower than air mail.

Mass Media

Various media technologies that reach a large audience via mass communication, such as television, radio, newspapers, and the internet.

Wikis

Collaborative platforms or websites that allow users to create, edit, and manage content collectively.