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:

Romantic Love

A deeply emotional and passionate affection between individuals often characterized by attachment and expressed through companionship, intimacy, and commitment.

Formal Organizations

Structured groups established for a specific purpose, characterized by a system of rules and hierarchies.

Authoritarian Leadership

Demands strict compliance from subordinates. Authoritarian leaders are most effective in a crisis such as a war or the emergency room of a hospital.

Social Groups

are collections of individuals who interact with each other based on shared interests, beliefs, or characteristics, forming a sense of unity and identity.