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:

Robbery

The act of taking personal property from the possession of another against that person’s will and under threat to do great bodily harm or damage.

Forgery

The act of fraudulently making or altering a document with the intent to deceive.

Larceny

The act of taking and carrying away the personal property of another without the right to do so.

Defrauding

The act of obtaining something of value through deceit or trickery.