One Reason for Holding Equity Investments in the Form of Marketable

question 8

True/False

One reason for holding equity investments in the form of marketable securities is that they generally earn a higher return than cash on deposit at a bank.

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Definitions:

Bond Payable

A long-term liability account that represents a promise to pay a series of payments over time and repay the principal amount at maturity.

Bondholder

An investor or entity that owns bonds issued by corporations or governments, entitling them to receive the bond's face value at maturity, as well as periodic interest payments.

Evidence

Information or documentation used to support or verify entries in the accounting records or financial statements.

Unsecured Bonds

Bonds issued without collateral, relying solely on the issuer's creditworthiness.