Asked by Keariel Threatt on Jun 05, 2024
Verified
Equity securities reflect a creditor relationship such as investments in notes,bonds,and certificates of deposit.
Equity Securities
Financial instruments that represent ownership interest in a company, such as common stock, and typically provide voting rights and potential dividends.
Creditor Relationship
The financial relationship that exists between a borrower or debtor and a lender, where the lender provides a loan or credit to the borrower.
- Recognize the accounting implications of equity and debt securities and their distinctions.
Verified Answer
RM
Rachel MegdalJun 07, 2024
Final Answer :
False
Explanation :
Equity securities represent ownership in a company, whereas creditor relationships are typically found in debt securities such as notes, bonds, and certificates of deposit.
Learning Objectives
- Recognize the accounting implications of equity and debt securities and their distinctions.
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