Which of the Following Categories of Investments Can Be Both

question 39

Multiple Choice

Which of the following categories of investments can be both debt and equity securities?

• A)Available-for-sale securities
• B)Trading securities
• C)Held-to-maturity securities
• D)Both available-for-sale and trading securities

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Definitions:

Accounts Receivable

Funds that customers owe a company for goods or services already provided but not yet compensated for.

Allowance Method

An accounting technique used to estimate and account for a firm's potentially uncollectible accounts receivable.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible.

Uncollectible Receivables

Accounts receivable that a company does not expect to collect and writes off as a bad debt expense.