Which of the Following Is the Best Description of Investments

question 85

Multiple Choice

Which of the following is the best description of investments in trading securities?

• A) Investments in bonds that management intends to hold to maturity.
• B) Investments in stocks or bonds that are held primarily for the purpose of selling them in the near future.
• C)Investments in more than fifty percent of the voting stock of another company.
• D)Investments that provides the investor significant influence over the investee, but not control over the investee.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific period of time.

Trial Balance

A report that lists the balances of all general ledger accounts at a certain date, used to verify that the total of all debit balances equals the total of all credit balances.

Journalizing Transactions

The process of recording financial transactions in a company's accounting records, or journals, in chronological order.

Balance Sheet

A statement that outlines an enterprise's assets, liabilities, and the equity held by shareholders, pinpointed to a specific time frame.