Which Statement Is Correct

question 21

Multiple Choice

Which statement is correct?

• A) A held for trading security can be classified as cash.
• B) A security that is held to maturity cannot be classified as cash equivalent.
• C) A security that has been classified as a held-for-trading can also be classified as cash equivalent.
• D) A security that has been classified as a held-for-trading cannot also be classified as cash equivalent.

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Definitions:

Marginal Revenue

The additional income earned by selling one more unit of a good or service; it can vary depending on the current level of output and market conditions.

Fourth Unit

Typically implies an incremental or additional unit in a sequence, often used in economics or logistics to discuss marginal utilities or effects.

Price Discrimination

The practice of charging different prices to different customers for the same product or service, based on factors like willingness to pay, location, or purchase volume.

Resell

The act of selling an item that one has previously purchased or acquired, potentially at a different price point.