Investments in Trading Securities

question 163

Multiple Choice

Investments in trading securities:

• A)Include only equity securities.
• B)Are reported as current assets.
• C)Include only debt securities.
• D)Are reported at their cost,no matter what their market value.
• E)Are long-term investments.

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Definitions:

Common Region

A principle of perceptual organization where elements located within the same bounded space are perceived as being grouped together.

Closure

The psychological phenomenon of seeking a sense of resolution or completeness in perceptual or cognitive processes.

Contiguity

A Gestalt principle of perception; the tendency to perceive two things that happen close together in time as being related.

Continuity

A Gestalt principle of perception; the tendency to perceive things as simply as possible with a continuous pattern rather than with a complex, broken-up pattern.