An Example of a Capital Resource Is

question 225

Multiple Choice

An example of a capital resource is:

• A)stock in a computer software company.
• B)the funds in a CD account at a bank.
• C)a bond issued by a company selling electric generators.
• D)a dump truck.
• E)an employee of a moving company.

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Definitions:

Long-Term Investments

Investments made by a company in bonds, stocks, or other financial assets, intended to be held for a period longer than a year.

Debt Investments-AFS

Available-for-sale debt investments represent debt securities that a company intends to hold for a period of time but may sell before maturity for capital management reasons.

Loss on Sale

The financial loss realized when the selling price of an asset is less than its carrying value on the balance sheet.

Available-For-Sale Securities

Debt or equity securities not classified as held-to-maturity or trading securities, and are purchased with the intention of selling before they mature.