Which Statement Is FALSE

question 185

Multiple Choice

Which statement is FALSE?

• A)Available-for-sale securities are held with the intent of selling them some time in the future.
• B)Held-to-maturity securities are stock investments that the investor has the intent and ability to hold until they mature.
• C)Trading securities are debt and stock investments purchased and expected to be sold in the near term through active trading.
• D)A debt security not classified as either trading or held-to-maturity is an available-for-sale security.

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Definitions:

Mixed Cost

A cost consisting of both fixed and variable components and changes in response to variations in production or sales levels.

Variable And Fixed Cost

Expenses that include both variable costs, which fluctuate with production or service levels, and fixed costs, which remain constant regardless of activity.

Mixed Cost

A cost consisting of a fixed component and a variable component, changing in total with the level of activity but remaining constant per unit.

Units-Of-Production Depreciation

A method of depreciation that allocates an asset's cost based on its usage, productivity, or units of production, rather than the passage of time.