Debt Investments Accounting Quiz
5 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

How many categories do companies group debt investments into?

  • Five
  • Four
  • Three (correct)
  • Two

    • What are the motivations for investing in debt investments?

  • To earn a high rate of return (correct)
  • To influence the management decisions of other companies
  • To gain ownership stake in other companies
  • To secure certain operating or financing arrangements with another company

    • What are the two criteria for the classification and measurement of financial assets?

  • Business model and financial investment amount
  • Contractual cash flow characteristics and business location
  • Company size and investment duration
  • Business model and contractual cash flow characteristics (correct)

    • What are the characteristics of debt investments?

    <p>Contractual payments on specified dates of principal and interest</p> Signup and view all the answers

    Which category of debt investments indicates an intent to sell them prior to maturity?

    <p>Trading</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser