In Substance,investments in Equity Securities May Be Classified As

question 20

Multiple Choice

In substance,investments in equity securities may be classified as:

• A) Trading investments at fair value, where increments and decrements in the fair value of the investments are recognised in the income statement.
• B) Available for sale investments.
• C) Equity investments in subsidiaries, associates and joint venture entities.
• D) All of the above.

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Definitions:

Noncash Investing

Investment activities that do not involve immediate cash transactions, such as acquiring assets through the issuance of stock or the exchange of one asset for another.

Financing Activities

Transactions and events that affect a company's long-term liabilities and equity, including debt issuance and equity transactions.

Statement Of Cash Flows

A financial statement that details the inflows and outflows of cash for a business over a specific period, highlighting operating, investing, and financing activities.

Significant Noncash

Transactions or activities that have a significant impact on an entity's financial statements without involving cash flows.