Which of the Following Is True of Available-For-Sale (AFS) Debt

question 188

Multiple Choice

Which of the following is true of available-for-sale (AFS) debt investments?

• A) They are always reported as current assets in the balance sheet.
• B) They are always reported as long-term assets in the balance sheet.
• C) They are reported as current assets on the balance sheet only if the business expects to sell them within the first two years.
• D) They are reported as long-term assets on the balance sheet only if they are planned to be held for longer than a year.

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Definitions:

Punitive Damages

Punitive damages are compensation awarded in addition to actual damages, intended to punish the defendant for egregious wrongdoing and deter similar future actions.

Negligence

A failure to exercise appropriate and/or ethical ruled care expected to be exercised amongst specified circumstances, leading to harm or damage.

Reasonable Person

A legal standard used to determine how an average person would responsibly act under similar circumstances.

Society Expect

The anticipations or beliefs regarding behavior, norms, or achievements considered standard or desirable by a community or group.