What Factor Is Not Important in Classifying an Investment as Held

question 117

Multiple Choice

What factor is not important in classifying an investment as held for trading?

• A)Whether the instrument is a debt, equity or 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:

Linear Inequalities

Mathematical statements that involve linear expressions and inequalities, showing that one side is either greater than, less than, greater than or equal to, or less than or equal to the other.

System

A group of guidelines or processes used to accomplish a task; a systematic strategy or technique.

Positive Exponents

Exponents that are positive numbers, indicating how many times the base is multiplied by itself.

Expression

A combination of symbols that represent a quantity or a relationship between quantities, often including variables and constants.