Which of the Following Is True

question 80

Multiple Choice

Which of the following is true?

• A) Trading securities can be classified as current or noncurrent depending on management's intent.
• B) Held-to-maturity securities should not be classified as current under any circumstance.
• C) Available-for-sale securities can be classified as current or noncurrent depending on management's intent.
• D) Trading securities should not be classified as current under any circumstance.

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Definitions:

Actuarial Calculations

The mathematical analysis performed by actuaries to calculate risks, premiums, life expectancies, and pension contributions, based on statistical data.

Assumed Investment Rate

The hypothesized annual rate of return expected from an investment used in financial planning and projections.

Annuity Cost

The initial sum paid or the series of periodic payments required to obtain an annuity.

Return On Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing the benefit (return) of an investment by its cost.