Investments in debt securities that the company actively manages and trades for profit are referred to as short-term debt investments in:Multiple ChoiceHeld-to-maturity securities.Available-for-sale securities.Trading securities.Realizable securities.Liquid securities.
Question
Investments in debt securities that the company actively manages and trades for profit are referred to as short-term debt investments in:Multiple ChoiceHeld-to-maturity securities.Available-for-sale securities.Trading securities.Realizable securities.Liquid securities.
Solution
The correct answer is: Trading securities.
Here's why:
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Held-to-maturity securities: These are debt securities that a company intends to hold until they mature. They are not actively managed or traded for profit.
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Available-for-sale securities: These are debt or equity securities that are not actively traded by the company. They are typically held for a longer period of time and not for immediate profit.
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Trading securities: These are debt or equity securities that a company actively manages and trades for profit. They are typically held for a short period of time. This matches the description in the question.
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Realizable securities: This is not a standard classification of investments in securities.
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Liquid securities: These are securities that can be easily bought or sold without causing a significant movement in the price. They are not necessarily actively managed or traded for profit.
Similar Questions
Bonds are: A. Short-term debt securities B. Long-term debt securities C. Equity investments D. Physical assets
Trading (debt) securities are:Multiple ChoiceIntended to be held to maturity.Recorded at cost and then reported at cost over the life of the investment.Recorded at cost and then reported at fair value on the balance sheet.Always classified as Long-Term Investments.Reported at historical cost and then adjusted for the amortized amount of any difference between cost and maturity value.
Short-term investments are securities held by a company that are Group of answer choicesreadily marketable.intended to be converted into cash within the next year.readily marketable and intended to be converted into cash within the next year or operating cycle, whichever is longerreadily marketable and intended to be held until maturity.
Short-term investments include:Multiple ChoiceNoncurrent assets.Investments in land or other assets not used in operations.Securities that management intends to convert to cash within one year or the operating cycle, whichever is longer, and are readily convertible to cash.Bonds not intended to be converted into cash.Stocks not intended to be converted into cash.
Debt securities that a company intends and is able to hold until maturity are known as:Multiple ChoiceConsolidation securities.Held-to-maturity securities.Available-for-sale securities.Equity method investments.Trading securities.
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