Which of the Following Is a Condition to Record an Investment

question 70

Multiple Choice

Which of the following is a condition to record an investment as an available-for-sale security?

• A)There should not be any annual cash flows from the investment.
• B)It should have a maturity of less than two years.
• C)It should be a debt security.
• D)The ownership in the voting stock of the investee should be less than 20%.

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Definitions:

McDonald's Evolution

The historical growth and change of McDonald's Corporation, detailing how it expanded from a single restaurant into a global fast-food chain.

Wheel Of Retailing

A concept that describes how new types of retailers enter the market as low-status, low-margin stores and then evolve into higher-priced, higher-service establishments, eventually becoming similar to the conventional retailers they replaced.

Low Breadth

This term typically refers to a narrow scope or range of products, services, or areas of expertise within a business or activity, contrasting with a wide or diverse portfolio.

High Depth

High depth, in a business context, often refers to a significant level of detail, knowledge, or specialization in a particular area or activity.