A Bond Can Be

question 18

Multiple Choice

A bond can be:

• A)​partial ownership in a corporation.
• B)​a debt obligation of a company.
• C)​a debt obligation of a government or government agency.
• D)​both B and C above

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Definitions:

Available-for-Sale Securities

Financial assets that a company intends to sell within a short period but can hold onto for an indefinite period, classified as neither held for trading nor held to maturity.

Realizable Securities

Financial assets that can be quickly converted into cash with a known market price.

Unrealized Loss

A decrease in the value of an investment that has not yet been sold and therefore not yet recognized as a loss in the accounts.

Contingent Loss

A potential financial loss that may occur depending on the outcome of a future event.