What Factor Is Important in Classifying an Investment at Fair

question 63

Multiple Choice

What factor is important in classifying an investment at fair value through profit or loss?

• A)Whether the instrument is a debt, equity or derivative instrument.
• B)Whether the instrument has a set maturity date.
• C)What is the business model within which the investments are held?
• D)Whether the instrument generates dividends.

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Definitions:

Mentally Retarded

An outdated and offensive term for intellectual disability, which refers to significant limitations in intellectual functioning and adaptive behavior.

Maximizing

The practice of thoroughly considering all available options to make the best possible decision.

Satisficing

A decision-making strategy that involves searching through the available alternatives until an acceptability threshold is met, rather than seeking the best possible outcome.

Phoneme

The smallest unit of sound in a language that can distinguish one word from another.