As Part of Their Internal Control Procedures, Management Needs to Have

question 145

Multiple Choice

As part of their internal control procedures, management needs to have procedures in place to properly classify financial instruments as trading, available-for-sale, or held-to-maturity, based on

• A) cost.
• B) intent.
• C) maturity.
• D) probable future gain or loss.

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Definitions:

Mental Stamina

The strength and perseverance to continue or complete tasks even when they are challenging or when one is facing mental fatigue.

Captive Clients

Clients who are obliged to use a service, often due to legal, institutional, or situational constraints, rather than out of personal choice or preference.

Judging

The act of forming opinions or evaluations about something or someone, often involving critical assessments.

Threatening

Behaviors, actions, or statements intended to cause fear or apprehension in others, often as a means of controlling or influencing their actions.