Which of the Following Is Required by Accounting Standards for the Presentation

question 58

Multiple Choice

Which of the following is required by accounting standards for the presentation and disclosure of investments in marketable securities?

• A) By classification as trading, available-for-sale or held-to maturity.
• B) For an analyst's determination of liquidity.
• C) For the company's physical possession of the security versus agent holdings.
• D) For the expected success of the organization of investment.

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Definitions:

Non-Interest-Bearing Note

A debt instrument that does not accrue interest over its life, meaning it is issued at its face value and repaid at the same amount without additional interest payments.

Market Rate

The prevailing interest rate available in the marketplace for loans and deposits, influenced by supply and demand, the central bank’s policy, and other factors.

Interest Expense

An accounting item representing the charge for the use of borrowed funds, affecting an organization's net income.

Note Payable

A written promise to pay a specified sum of money, often bearing interest, at a future date.