Which of the Following Statements Is True About Investments Categorized

question 4

Multiple Choice

Which of the following statements is true about investments categorized as trading securities?

• A)They are valued on the balance sheet at cost.
• B)They can consist of debt,but not equity,securities.
• C)They are purchased to be held to maturity.
• D)Changes in market value are reflected in net income.

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Definitions:

Subsidy

A financial contribution granted by the government or a public body to support businesses, reduce the price of commodities, or encourage activities beneficial to the public interest.

Equilibrium Number

When market demand equals supply, leading to stability in prices.

Pollution Permits

Licenses that allow the holder to emit a specific amount of pollutants into the environment, used in regulatory strategies to reduce pollution.

Marketplace

A marketplace is a physical or digital venue where buyers and sellers come together to exchange goods, services, or information.