Trading (Debt)securities Are

question 100

Multiple Choice

Trading (debt) securities are:

• A)Recorded at cost and then reported at cost over the life of the investment.
• B)Reported at historical cost and then adjusted for the amortized amount of any difference between cost and maturity value.
• C)Recorded at cost and then reported at fair value on the balance sheet.
• D)Intended to be held to maturity.
• E)Always classified as Long-Term Investments.

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Definitions:

Materially Altered

A change in a document or agreement that significantly affects its terms or conditions.

Holder In Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus is protected against certain defenses and claims that could be raised against the original payee.

Payee

The party in a transaction who receives the payment.

Properly Delivered

Pertains to goods or documents being conveyed to the correct recipient in good condition and within the agreed timeframe.