All Investments NOT Classified as Trading Securities or Held-To-Maturity Securities

question 69

Multiple Choice

All investments NOT classified as trading securities or held-to-maturity securities are classified as:

• A)debt securities.
• B)equity securities.
• C)marketable securities.
• D)available-for-sale securities.

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Definitions:

Preference Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, typically with fixed dividends and without voting rights.

NCI

Non-controlling interest, a portion of the equity in a subsidiary not attributable, directly or indirectly, to the parent company.

Consolidated Statement

Financial statements that represent the combined financials of a parent company and its subsidiaries, showing the total of assets, liabilities, and equities.

Financial Position

A snapshot of what a company owns and owes, represented on the balance sheet, including assets, liabilities, and equity at a specific point in time.