A Comprehensive Chart of Accounts and a Review of Complex

question 115

True/False

A comprehensive chart of accounts and a review of complex or unusual transactions by supervisory personnel are control procedures necessary for proper classification of accounts.

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Definitions:

Amortized

The process of gradually writing off the initial cost of an asset or paying down a debt over a period of time through regular payments.

Available-For-Sale Securities

Securities that management expects to sell in the future but which are not actively traded for profit.

Actively Traded

This describes securities or assets that have high trading volumes and liquidity in financial markets.

Realized Gain

The profit earned from the sale of an asset when the sale price exceeds the purchase price, which has become actual rather than just theoretical.