Classify Each of the Following Items into One of the Seven

question 98

Essay

Classify each of the following items into one of the seven categories of financial assets relevant for financial reporting purposes. Select the category that best suits the situation given.
$\begin{array}{|ll|cc|} \hline & & \text { Financial asset category relevant for} \\ \text { } & &\text { financial reporting purposes }\\ \hline \text { Investment in bonds maturing in 30 years } &\\ \hline \text {Investment in bonds maturing in two years. } &\\ \text { Management made the purchase to invest idle } &\\ \text { cash until after two years, when it make a } &\\ \text { major capital expenditure. } &\\ \hline \text { Investment in 900,000 shares of Hot. Corp. a } &\\ \text { public company with 2 million shares } &\\ \text { outstanding, } &\\ \hline \text { Purchase of 600 shares of Delicious Treats, a } &\\ \text { private company with 1,000 shares } &\\ \text { putstanding, } &\\ \hline \end{array}$

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Definitions:

Ethical Decisions

Choices made based on moral principles and values, aiming to do what is right and fair while considering the impact on all stakeholders.

Nationality

The status of belonging to a particular nation, either by birth or naturalization, often associated with specific legal rights and obligations.

Descriptive Approaches

Methods or strategies focused on describing and understanding phenomena rather than predicting or manipulating them.