5 Questions
How many categories do companies group debt investments into?
Three
What are the motivations for investing in debt investments?
To earn a high rate of return
What are the two criteria for the classification and measurement of financial assets?
Business model and contractual cash flow characteristics
What are the characteristics of debt investments?
Contractual payments on specified dates of principal and interest
Which category of debt investments indicates an intent to sell them prior to maturity?
Trading
Test your knowledge of accounting for debt investments with this quiz. Learn about the classification and measurement of financial assets, motivations for investing, and the types of financial assets such as debt and equity investments.
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