Which of the Following Is the Major Difference Between the Accounting

question 65

Multiple Choice

Which of the following is the major difference between the accounting for equity securities and debt securities?

• A) Debt securities are classified as liabilities, while equity securities are classified as assets.
• B) Debt securities are classified as trading debt investments, while equity securities are classified as held-to-maturity equity investments.
• C) Debt securities earn interest revenue, while equity securities may earn dividend revenue.
• D) Debt securities of all types have a maturity date, while only a few equity securities have a maturity date.

---

Definitions:

Psychological Approach

A method or strategy in psychology that focuses on understanding mental processes, behaviors, and emotional responses of individuals.

Behavior And Consciousness

Refers to the study of how actions (behavior) are influenced by or related to one's awareness and thought processes (consciousness).

Stream Of Consciousness

A narrative mode that attempts to capture the flow of thoughts and feelings running through the mind.

Functionalists

A perspective in sociology and psychology that emphasizes the importance of understanding the purpose or function of behavior and social institutions.