Asked by Joshua Rieser on Jun 18, 2024
Verified
Investments in debt and equity securities that are held for current resale by banks and stockbrokerage firms are termed
A) available-for-sale securities
B) trading securities
C) held-to-maturity securities
D) marketable securities
Trading Securities
Financial instruments that are purchased and held primarily for selling them in the near term to generate income on short-term price differences.
Marketable Securities
Financial instruments that can be easily converted into cash, typically with high liquidity and short-term maturities.
- Develop an understanding of various investment categories (trading, available-for-sale, held-to-maturity) and learn about their relevant accounting procedures.
Verified Answer
NP
Nirav ParmarJun 20, 2024
Final Answer :
B
Explanation :
Trading securities are investments made by banks and stockbrokerage firms in debt and equity securities that are held for current resale. Available-for-sale securities are held as investments, but not necessarily for immediate resale. Held-to-maturity securities are held until their maturity date, and marketable securities refers to any security that can be easily bought or sold on the market.
Learning Objectives
- Develop an understanding of various investment categories (trading, available-for-sale, held-to-maturity) and learn about their relevant accounting procedures.
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