How Would a Short-Term Investment in Bonds to Earn a Return

question 129

Multiple Choice

How would a short-term investment in bonds to earn a return on funds that would otherwise be held as cash be classified.

• A)Amortized cost.
• B)At fair value through profit or loss.
• C)At fair value through other comprehensive income.
• D)Associate.

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Definitions:

External

Pertaining to or located outside of an entity or organization, often relating to the external environment, influences, or factors.

Common

Pertains to something that is usual, shared by multiple entities, or occurring frequently.

Positive Externality

A benefit that affects someone who did not choose to incur that benefit, often related to economic activities.

Nominal

pertaining to names or terms, or representing values by names in certain contexts, such as nominal data in statistics which categorizes without a natural order.