Firms sometimes acquire bonds or capital stock of other entities for their expected returns (through interest, dividends, and price appreciation) without any intent to exert influence or control over the other entity. Which of the following is/are true?
a. U.S. GAAP and IFRS presume that the acquisition of any amount of bonds, and the acquisition of less than 20% of the voting stock of another entity implies an inability to exert significant influence or control.
b. Firms may classify such securities as debt securities held to maturity (IFRS uses the term held-to-maturity investments).
c. Firms may classify such securities as trading securities (IFRS uses the term financial assets at fair value through profit or loss).
d. Firms may classify such securities as securities available for sale (IFRS uses the term available-for-sale financial assets).
e. all of the above
E
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The cash-to-cash operating cycle is the number of days' sales in
a. receivables and working capital. b. receivables and plant assets. c. inventory and receivables. d. inventory and plant assets.
Which of the following is not a subsidiary ledger used in a job cost system?
a. materials ledger; b. factory overhead ledger; c. job cost ledger; d. direct labor ledger; e. finished goods ledger.
Investors with a _____ will demand a higher rate of return.?
A. ?higher time preference for consumption B. ?lower exposure to economic risks C. ?lower access to production opportunities D. ?higher financial creditworthiness E. ?lower default premium
In saving or investing, the ________ the risk, the ________ the potential return
A) higher; higher B) lower; lower C) higher; lower D) Both A and B are correct