What Should an Investment in a Debt Investment Be Classified

question 89

Multiple Choice

What should an investment in a debt investment be classified as when management has not specifically identified the classification? That is to say, in the absence of an election, what is the default category?

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

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Definitions:

Organizational Goals

These are predetermined objectives that a company or organization sets to guide its operations and strategic planning, aiming for long-term success and sustainability.

Friendship Groups

Informal social groups formed among colleagues, classmates, or neighbors based on mutual interests, support, and camaraderie.

Task Groups

Collections of individuals brought together to accomplish a specific job, project, or assignment within a limited timeframe.

Formal Groups

Collections of individuals brought together within an organization to achieve specific goals with defined roles and structures.