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Questions and Answers
How many categories do companies group debt investments into?
How many categories do companies group debt investments into?
- Five
- Four
- Three (correct)
- Two
What are the motivations for investing in debt investments?
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?
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?
What are the characteristics of debt investments?
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Which category of debt investments indicates an intent to sell them prior to maturity?
Which category of debt investments indicates an intent to sell them prior to maturity?
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