Money Market Instruments Issued by a Corporation

question 47

Multiple Choice

Money market instruments issued by a corporation:

• A)are default-free.
• B)are less liquid than those issued by the government.
• C)must be held by the original purchaser until maturity.
• D)can only be resold to the original issuer.
• E)are risk-free.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's profit or loss.

Consolidated Worksheet

A tool used in the preparation of consolidated financial statements, enabling the combining of financial information from parent and subsidiary entities.

Adjustments

Modifications made to the accounting records or financial statements to correct errors or to account for transactions not reflected in the initial entries.

Consolidated Net Income

The total profit of a parent company and its subsidiaries after taxes and interest, combined into one financial statement.