What Factor Is the Most Important in Classifying an Investment

question 126

Multiple Choice

What factor is the most important in classifying an investment at fair value through other comprehensive income?

• A)Whether the instrument is a derivative instrument.
• B)Whether management intends to sell the instrument shortly after purchase.
• C)Whether gains will be realized in the next operating cycle.
• D)Whether the instrument has a fixed maturity date.

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Definitions:

Corporate Vertical Marketing System

A structured form of supply chain organization in which a single company owns or controls each layer of the supply chain, from production to retail.

Supply Chains

Networks that involve the production and supply of goods, involving multiple stages including material procurement, manufacturing, and distribution.

Transactional Relationships

Business interactions focused on the exchange of goods, services, or funds with little emphasis on building long-term partnerships.

EDI System

Electronic Data Interchange system, allowing the structured transmission of data between organizations electronically.