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:

Racial Socialization

The process by which individuals, usually children, learn the behaviors, perceptions, and expectations associated with their race from family members, society, and their culture.

Psychoanalytic Theory

A theoretical framework developed by Sigmund Freud that emphasizes unconscious mental processes and childhood experiences in shaping personality and behavior.

Inner Drives

The innate impulses or motivations that inspire individuals to take action or behave in certain ways.

Psychosexual Stages

A Freudian theory that proposes five stages of childhood development, each characterized by the erogenous zone that is the source of the child's psychosexual energy.