Short-Term Investments

question 65

Multiple Choice

Short-term investments:

• A)include debt and equity securities that the investor expects to hold for more than a year.
• B)are investments in debt securities or equity securities in which the investor holds less than 50% of the voting stock and that the investor plans to sell in the very near future.
• C)are investments in debt and equity securities that are highly liquid and that the investor intends to sell in one year or less.
• D)are investments in debt securities, and the investor intends to hold them until maturity.

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Definitions:

Bank Reconciliation

The process of comparing a company's bank account balance with its financial records to identify discrepancies and ensure accuracy.

Sign Cheques

The action of signing a check as a means of authorizing a bank to transfer funds from the signer's account.

Reconciling Items

Entries that adjust discrepancies between two financial records or accounts, ensuring consistency and accuracy.

Adjusting Journal Entries

Adjusting Journal Entries are made in an accounting system to adjust income and expense accounts so that they reflect the correct values for the accounting period.